The Global

Competitiveness Report
2009–2010

Klaus Schwab, World Economic Forum

World Economic Forum
Geneva, Switzerland 2009

Professor Klaus Schwab
World Economic Forum
Editor

The Global
Competitiveness Report
2009–2010

Professor Xavier Sala-i-Martin
Columbia University
Chief Advisor of the Global Competitiveness Network

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

The Global Competitiveness Report
2009–2010 is published by the World
Economic Forum within the framework of the
Global Competitiveness Network.

World Economic Forum
Geneva

Professor Klaus Schwab
Executive Chairman

All rights reserved. No part of this publication
may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying,
or otherwise without the prior permission of
the World Economic Forum.

Professor Xavier Sala-i-Martin
Chief Advisor of the Global Competitiveness
Network
Robert Greenhill
Chief Business Officer

Copyright © 2009
by the World Economic Forum

ISBN-13: 978-92-95044-25-8
ISBN-10: 92-95044-25-8

GLOBAL COMPETITIVENESS NETWORK

Jennifer Blanke, Director, Senior Economist,
Head of Global Competitiveness Network
Margareta Drzeniek Hanouz, Director,
Senior Economist
Irene Mia, Director, Senior Economist
Thierry Geiger, Associate Director,
Economist, Global Leadership Fellow
Ciara Browne, Associate Director
Pearl Samandari, Community Manager
Eva Trujillo Herrera, Research Assistant
Carissa Sahli, Coordinator

This book is printed on paper suitable for
recycling and made from fully managed and
sustained forest sources.
Printed and bound in Switzerland by SRO-Kundig.

We thank Hope Steele for her superb editing
work and Neil Weinberg for his excellent
graphic design and layout. We are grateful to
Joelle Latina for her invaluable research
assistance.
The terms country and nation as used in this
report do not in all cases refer to a territorial
entity that is a state as understood by international law and practice. The terms cover
well-defined, geographically self-contained
economic areas that may not be states but
for which statistical data are maintained on
a separate and independent basis.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Contents

Partner Institutes

Preface

v

Part 2: Data Presentation

59

xi

2.1 Country/Economy Profiles

61

by Klaus Schwab

How to Read the Country/Economy Profiles ...............................63
List of Countries/Economies .........................................................65
Country/Economy Profiles .............................................................66

Part 1: Measuring Competitiveness
1.1 The Global Competitiveness Index 2009–2010:
Contributing to Long-Term Prosperity amid the
Global Economic Crisis

1

2.2 Data Tables

3

How to Read the Data Tables......................................................335
Index of Data Tables ....................................................................337
Data Tables ..................................................................................339

by Xavier Sala-i-Martin, Jennifer Blanke, Margareta Drzeniek
Hanouz, Thierry Geiger, and Irene Mia

1.2 The Executive Opinion Survey:
Capturing the Views of the Business Community
by Ciara Browne and Thierry Geiger

333

Technical Notes and Sources

473

About the Authors

477

Acknowledgments

479

49

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Partner Institutes

Partner Institutes

The World Economic Forum’s Global Competitiveness
Network is pleased to acknowledge and thank the following organizations as its valued Partner Institutes,
without whom the realization of The Global
Competitiveness Report 2009–2010 would not have been
feasible:
Albania
Institute for Contemporary Studies (ISB)
Artan Hoxha, President
Elira Jorgoni, Senior Expert and Project Manager
Denalada Kuzumi, Researcher
Algeria
Centre de Recherche en Economie Appliquée
pour le Développement (CREAD)
Youcef Benabdallah, Assistant Professor
Yassine Ferfera, Director
Argentina
IAE- Universidad Austral
María Elina Gigaglia, Project Manager
Eduardo Luis Fracchia, Professor
Armenia
Economy and Values Research Center
Manuk Hergnyan, Chairman
Sevak Hovhannisyan, Board Member and Senior Associate
Gohar Malumyan, Research Associate
Australia
Australian Industry Group
Nicholas James, Economist
Tony Pensabene, Associate Director, Economics & Research
Heather Ridout, Chief Executive
Austria
Austrian Institute of Economic Research (WIFO)
Karl Aiginger, Director
Gerhard Schwarz, Coordinator, Survey Department
Azerbaijan
Azerbaijan Marketing Society
Fuad Aliyev, Executive Director
Ashraf Hajiyev, Project Coordinator
Saida Talibova, Consultant
Bahrain
Bahrain Competitiveness Council, Bahrain Economic
Development Board
Nada Azmi, Business Intelligence Specialist, Economic
Planning & Development
Jawad Habib, Senior Partner, BDO Jawad Habib
Rima Al Kilani, Director, International Marketing
Bangladesh
Centre for Policy Dialogue (CPD)
Khondaker Golam Moazzem, Senior Research Fellow
Kazi Mahmudur Rahman, Senior Research Associate
Mustafizur Rahman, Executive Director

Barbados
Arthur Lewis Institute for Social and Economic Studies,
University of West Indies (UWI)
Andrew Downes, Director
Belgium
Vlerick Leuven Gent Management School
Lutgart Van den Berghe, Professor, Executive Director
and Chairman, Competence Centre Entrepreneurship,
Governance and Strategy
Bieke Dewulf, Associate, Competence Centre Entrepreneurship,
Governance and Strategy
Wim Moesen, Professor
Benin
Micro Impacts of Macroeconomic Adjustment Policies
(MIMAP) Benin
Epiphane Adjovi, Business Coordinator
Maria-Odile Attanasso, Deputy Coordinator
Fructueux Deguenonvo, Researcher
Bosnia and Herzegovina
MIT Center, School of Economics and Business in Sarajevo,
University of Sarajevo
Zlatko Lagumdzija, Professor
Zeljko Sain, Executive Director
Jasmina Selimovic, Assistant Director
Botswana
Botswana National Productivity Centre
Joseph Jonazi, Research Consultant and Statistician
Dabilani Buthali, Manager, Information and
Research Services Department
Thembo Lebang, Executive Director
Brazil
Fundação Dom Cabral
Carlos Arruda, Executive Director, International Board
and Professor and Coordinator of the Competitiveness
and Innovation Center
Marina Araújo, Economist and Researcher of the
Competitiveness and Innovation Center
Movimento Brasil Competitivo (MBC)
Cláudio Leite Gastal, Director President
Denise Alves, Projects Coordinator
Elisa de Araújo, Projects Assistant
Brunei Darussalam
Ministry of Industry and Primary Resources
Pehin Dato Yahya Bakar, Minister
Dato Paduka Hj Hamdillah Hj Abd Wahab, Deputy Minister
Dato Paduka Hamid Hj Mohd Jaafar, Permanent Secretary
Bulgaria
Center for Economic Development
Anelia Damianova, Senior Expert
Burkina Faso
lnstitut Supérieure des Sciences de la Population (ISSP),
University of Ouagadougou
Samuel Kabore, Economist and Head of Development Strategy
and Population Research

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

v

Partner Institutes

Burundi
University Research Centre for Economic and Social
Development (CURDES), National University of Burundi
Richard Ndereyahaga, Head of CURDES
Gilbert Niyongabo, Dean, Faculty of Economics
& Management
Cambodia
Economic Institute of Cambodia
Sok Hach, President
Chan Vuthy, Senior Researcher
Poch Kongchheng, Junior Researcher
Cameroon
Comité de Compétitivité (Competitiveness Committee)
Lucien Sanzouango, Permanent Secretary
Canada
Institute for Competitiveness and Prosperity
Tamer Azer, Researcher
Roger Martin, Chairman and Dean of the Rotman
School of Management, University of Toronto
James Milway, Executive Director
Chad
Groupe de Recherches Alternatives et de Monitoring
du Projet Pétrole-Tchad-Cameroun (GRAMP-TC)
Antoine Doudjidingao, Researcher
Gilbert Maoundonodji, Director
Celine Nénodji Mbaipeur, Programme Officer

vi

Chile
Universidad Adolfo Ibáñez
Ignacio Briones, Associate Professor of Economics,
School of Government
Leonidas Montes, Dean, School of Government
Camila Chadwick, Project Coordinator
China
Institute of Economic System and Management
National Development and Reform Commission
Zhou Haichun, Deputy Director and Professor
Chen Wei, Research Fellow
Dong Ying, Professor
China Center for Economic Statistics Research,
Tianjin University of Finance and Economics
Lu Dong, Professor
Jian Wang, Associate Professor
Hongye Xiao, Professor
Bojuan Zhao, Professor
Huazhang Zheng, Associate Professor
Colombia
National Planning Department
Alvaro Edgar Balcazar, Entrepreneurial Development Director
Carolina Rentería Rodríguez, General Director
Mauricio Torres Velásquez, Advisor
Colombian Council of Competitiveness
Hernando José Gomez, President
Côte d’Ivoire
Chambre de Commerce et d’Industrie de Côte d’Ivoire
Jean-Louis Billon, President
Jean-Louis Giacometti, Technical Advisor to the President
Mamadou Sarr, Director General
Croatia
National Competitiveness Council
Martina Hatlak, Research Assistant
Kresimir Jurlin, Research Fellow
Mira Lenardic, General Secretary

Cyprus
Cyprus College Research Center
Bambos Papageorgiou, Head of Socioeconomic
and Academic Research
The Cyprus Development Bank
Maria Markidou-Georgiadou, Manager, International
Banking Services Unit and Business Development
Czech Republic
CMC Graduate School of Business
Tomas Janca, Executive Director
Denmark
Copenhagen Business School, Department of
International Economics and Management
Lise Peitersen, Administrative Director
Casper Rose, Professor
Ecuador
ESPAE Graduate School of Management,
Escuela Superior Politécnica del Litoral (ESPOL)
Elizabeth Arteaga, Project Assistant
Virginia Lasio, Acting Director
Sara Wong, Professor
Egypt
The Egyptian Center for Economic Studies
Hanaa Kheir-El-Din, Executive Director and Director of Research
Naglaa El Ehwany, Deputy Director and Lead Economist
Malak Reda, Senior Economist
Estonia
Estonian Institute of Economic Research
Evelin Ahermaa, Head of Economic Research Sector
Marje Josing, Director
Estonian Development Fund
Kitty Kubo, Head of Foresight
Ott Pärna, Chief Executive Officer
Ethiopia
African Institute of Management, Development and Governance
Tegegne Teka, General Manager
Finland
ETLA—The Research Institute of the Finnish Economy
Petri Rouvinen, Research Director
Pasi Sorjonen, Head of the Forecasting Group
Pekka Ylä-Anttila, Managing Director
France
HEC School of Management, Paris
Bertrand Moingeon, Professor and Deputy Dean
Bernard Ramanantsoa, Professor and Dean
Gambia, The
Gambia Economic and Social Development Research
Institute (GESDRI)
Makaireh A. Njie, Director
Georgia
Business Initiative for Reforms in Georgia
Giga Makharadze, Founding Member of the Board of Directors
Tamar Tchintcharauli, Executive Director
Mamuka Tsereteli, Founding Member of the Board of Directors
Germany
WHU - Otto Beisheim School of Management, Vallendar
Ralf Fendel, Professor of Monetary Economics
Michael Frenkel, Professor, Chair of Macroeconomics
and International Economics
Ghana
Association of Ghana Industries (AGI)
Carlo Hey, Project Manager
Cletus Kosiba, Executive Director
Tony Oteng-Gyasi, President

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Guatemala
FUNDESA
Edgar A. Heinemann, President of the Board of Directors
Pablo Schneider, Economic Director
Juan Carlos Zapata, General Manager
Guyana
Institute of Development Studies, University of Guyana
Karen Pratt, Research Associate
Clive Thomas, Director
Hong Kong SAR
Hong Kong General Chamber of Commerce
David O’Rear, Chief Economist
Federation of Hong Kong Industries
Alexandra Poon, Director
The Chinese General Chamber of Commerce
Hungary
KOPINT-TÁRKI Economic Research Ltd.
Ágnes Nagy, Project Manager
Éva Palócz, Chief Executive Officer
Iceland
Innovation Center Iceland
Karl Fridriksson, Managing Director of Human Resources
and Services
Rosa Signy Gisladottir, Manager, Marketing and Media Relations
Thorsteinn I. Sigfusson, Director
India
Confederation of Indian Industry (CII)
Chandrajit Banerjee, Director General
Tarun Das, Chief Mentor
Virendra Gupta, Head, International and Trade Fairs
Indonesia
Center for Industry, SME & Business Competition Studies,
University of Trisakti
Tulus Tambunan, Professor and Director
Iran, Islamic Republic of
The Centre for Economic Studies and Surveys (CESS),
Iran Chamber of Commerce, Industries and Mines
Hammed Roohani, Director
Ireland
Competitiveness Survey Group, Department of Economics,
University College Cork
Eleanor Doyle, Professor, Department of Economics
Niall O’Sullivan
Bernadette Power
National Competitiveness Council
Adrian Devitt, Manager
Caoimhe Gavin, Policy Advisor
Gráinne Greehy, Graduate Trainee
Israel
Manufacturers’ Association of Israel (MAI)
Shraga Brosh, President
Dan Catarivas, Director
Yehuda Segev, Managing Director
Italy
SDA Bocconi School of Management
Secchi Carlo, Full Professor of Economic Policy, Bocconi University
Paola Dubini, Associate Professor, Bocconi University
Francesco A. Saviozzi, SDA Assistant Professor,
Strategic and Entrepreneurial Management Department

Jamaica
Mona School of Business (MSB), The University of the
West Indies
Patricia Douce, Project Administrator
Evan Duggan, Executive Director and Professor
William Lawrence, Director, Professional Services Unit

Partner Institutes

Greece
SEV Hellenic Federation of Enterprises
Michael Mitsopoulos, Coordinator, Research and Analysis
Thanasis Printsipas, Economist, Research and Analysis

Japan
Hitotsubashi University, Graduate School of International
Corporate Strategy (ICS)
in cooperation with Keizai Doyukai Keizai (Japan Association
of Corporate Executives)
Yoko Ishikura, Professor
Kiyohiko Ito, Vice-President and General Manager for Policy
Studies, Keizai Doyukai
Jordan
Ministry of Planning & International Cooperation
Jordan National Competitiveness Team
Hiba Abu Taleb, Primary Researcher
Hussein Abwini, Primary Researcher
Kawthar Al-Zou’bi, Primary Researcher
Kazakhstan
JSC “National Analytical Centre of the Government and the
National Bank of the Republic of Kazakhstan”
Ayana Manasova, Chairperson
Aibek Baisakalov, Expert Analyst
Kenya
Institute for Development Studies, University of Nairobi
Mohamud Jama, Director and Associate Professor
Paul Kamau, Research Fellow
Dorothy McCormick, Associate Professor
Korea, Republic of
College of Business School, Korea Advanced Institute of
Science and Technology – KAIST
Ingoo Han, Senior Associate Dean and Professor
Ravi Kumar, Dean and Professor
Youjin Sung, Manager, Exchange Programme
Kuwait
Economics Department, Kuwait University
Abdullah Alsalman, Assistant Professor
Mohammed El-Sakka, Professor
Reyadh Faras, Assistant Professor
Kyrgyz Republic
Economic Policy Institute “Bishkek Consensus”
Lola Abduhametova, Program Coordinator
Marat Tazabekov, Chairman
Latvia
Institute of Economics, Latvian Academy of Sciences
Helma Jirgena, Director
Irina Curkina, Researcher
Lesotho
Mohloli Chamber of Business
Semethe Raleche, Chief Executive Officer
Libya
National Economic Development Board
Entisar Elbahi, Director, Relations and Supported Services
Lithuania
Statistics Lithuania
Ona Grigiene, Head, Economical Survey Division
˘
Algirdas Semeta,
Director General
Luxembourg
Chamber of Commerce of the Grand Duchy of Luxembourg
François-Xavier Borsi, Attaché, Economic Department
Marc Wagener, Attaché, Economic Department
Carlo Thelen, Chief Economist, Member of the Managing Board

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

vii

Partner Institutes

Macedonia, FYR
National Entrepreneurship and Competitiveness Council (NECC)
Dejan Janevski, Project Coordinator
Zoran Stavreski, President of the Managing Board
Saso Trajkoski, Executive Director

Montenegro
Institute for Strategic Studies and Prognoses (ISSP)
Maja Drakic, Project Manager
Petar Ivanovic, Chief Executive Officer
Veselin Vukotic, President

Madagascar
Centre of Economic Studies, University of Antananarivo
Pépé Andrianomanana, Director
Razato Raharijaona Simo, Executive Secretary

Morocco
Université Hassan II, LASAARE
Fouzi Mourji, Professor of Economics

Malawi
Malawi Confederation of Chambers of Commerce and Industry
Chancellor L. Kaferapanjira, Chief Executive Officer
Malaysia
Institute of Strategic and International Studies (ISIS)
Tan Sri Mohamed Jawhar Hassan, Chairman and
Chief Executive Officer
Mahani Zainal Abidin, Director-General
Steven C.M. Wong, Assistant Director-General
Malaysia Productivity Corporation (MPC)
Dato’ Nik Zainiah Nik Abd. Rahman, Director General
Lee Saw Hoon, Senior Director
Mali
Groupe de Recherche en Economie Appliquée et
Théorique (GREAT)
Massa Coulibaly, Coordinator
Malta
Competitive Malta - Foundation for National Competitiveness
Margrith Lutschg-Emmenegger, Vice President
Adrian Said, Chief Coordinator
Caroline Sciortino, Research Coordinator

viii

Mauritania
Centre d’Information Mauritanien pour le Développement
Economique et Technique (CIMDET/CCIAM)
Khira Mint Cheikhnani, Director
Lô Abdoul, Consultant and Analyst
Habib Sy, Analyst
Mauritius
Joint Economic Council of Mauritius
Raj Makoond, Director
Board of Investment
Dev Chamroo, Director, Planning & Policy
Manisha Dookhony, Manager, Planning & Policy
Raju Jaddoo, Managing Director
Mexico
Center for Intellectual Capital and Competitiveness
Erika Ruiz Manzur, Executive Director
René Villarreal Arrambide, President and Chief Executive Officer
Jesús Zurita González, General Director
Instituto Mexicano para la Competitividad (IMCO)
Gabriela Alarcon Esteva, Economist
Manuel J. Molano Ruiz, Deputy General Director
Roberto Newell Garcia, General Director
Ministry of the Economy
Felipe Duarte Olvera, Undersecretary for Competitiveness
and Standardization
Gerardo de la Peña, Technical Secretary for Competitiveness
Jose Antonio Torre, Chief of Staff, ProMéxico Trade & Investment
Paulo Esteban Alcaraz, Research Director, ProMéxico
Trade & Investment
Mongolia
Open Society Forum (OSF)
Munkhsoyol Baatarjav, Manager of Economic Policy
Erdenejargal Perenlei, Executive Director

Mozambique
EconPolicy Research Group, Lda.
Peter Coughlin, Director
Donaldo Miguel Soares, Researcher
Ema Marta Soares, Assistant
Namibia
Namibian Economic Policy Research Unit (NEPRU)
Lameck Odada, Consultant
Klaus Schade, Principal Researcher
Nepal
Centre for Economic Development and Administration (CEDA)
Ramesh Chandra Chitrakar, Professor and Director of Research
Menaka Rajbhandari Shrestha, Researcher
Santosh Kumar Upadhyaya, Researcher
Netherlands
Erasmus Strategic Renewal Center,
Erasmus University Rotterdam
Frans A. J. Van den Bosch, Professor
Henk W. Volberda, Professor
New Zealand
Business New Zealand
Marcia Dunnett, Manager, Sector Groups
Phil O’Reilly, Chief Executive
The New Zealand Institute
Rick Boven, Director
Benedikte Jensen, Research Director
Nigeria
Nigerian Economic Summit Group (NESG)
Felix Ogbera, Associate Director, Research
Sam Ohuabunwa, Chairman
Chris Okpoko, Senior Consultant, Research
Norway
BI Norwegian School of Management
Eskil Goldeng, Researcher
Torger Reve, Professor
Oman
The International Research Foundation
Salem Ben Nasser Al-Ismaily, Chairman
Mehdi Bin Ali Bin Juma, Expert for
Economic Research, the Omani Centre for Investment
Promotion & Export Development (OCIPED)
Pakistan
Competitiveness Support Fund
Arthur Bayhan, Chief Executive Officer
Stephen Manuel, Manager Media & Communication
Imran Naeem Ahmad, Communication Specialist
Paraguay
Centro de Análisis y Difusión de Economia Paraguaya (CADEP)
Dionisio Borda, Research Member
Fernando Masi, Director
María Belén Servín, Research Member
Peru
Centro de Desarrollo Industrial (CDI), Sociedad Nacional
de Industrias
Néstor Asto, Project Director
Luis Tenorio, Executive Director

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Head of State Planning Commission Syrian Enterprise Business Center (SEBC) Tamer Abadi. Jimenez. Deputy Governor for Investment Khaldon Mahasen. Professor Beat Bechtold. Researcher Suriname Institute for Development Oriented Studies (IDOS) Ashok Hirschfeld. Opulencia. Stockholm School of Economics Christian Ketels. Faculty of Business Sciences South Africa Business Leadership South Africa Friede Dowie. Director Ol’ga Es’kina. Economic Research Department Tajikistan The Center for Sociological Research “Zerkalo” Qahramon Baqoev. Consultant Stockholm School of Economics. Sociologist and Economist Tanzania Research on Poverty Alleviation (REPOA) Joseph Semboja. Associate Dean of Research Saudi Arabia National Competitiveness Center (NCC) Awwad Al-Awwad.P. Senior Researcher. Research Assistant Forum de Administradores de Empresas (FAE) Pedro do Carmo Costa. Hung. Chief Operating Officer Spain IESE Business School. China Council for Economic Planning and Development. Commissioned Research Department The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum ix . Economic Research Department Chung Chung Shieh. Suzette M. Secretary-General Ahmed El-Shaffee. Researcher. Fey. Associate Professor Portugal PROFORUM. Member of the CEVES Council of Directors Singapore Economic Development Board Lim Hong Khiang.Philippines Makati Business Club Alberto A. Deputy Director Piotr Boguszewski. Executive Director Russian Federation Bauman Innovation Alexei Prazdnitchnykh. Director. Gallen. President Francisco Montalvo Fiol. Professor and Executive Director Lucas Katera. Head. Executive Director Martin Toth. Program Coordinator Liviu Voinea. Senior Researcher University of Ljubljana Mateja Drnovs˘ek. Research Officer Ruwan Jayathilaka. Senior Research Fellow Örjan Sölvell. President Sweden Center for Strategy and Competitiveness. Inc. Manager. Qualitative Research John R. Research Officer Puerto Rico Puerto Rico 2000. Vice President of the Board of Directors Slovenia Institute for Economic Research Peter Stanovnik. Head. Director. Technology and Law (ES-HSG) Franz Jaeger. Director Zbigniew Zólkiewski. Krishnadath. Investment Performance Assessment Senegal Centre de Recherches Economiques Appliquées (CREA). Principal. Chief Executive Officer Vic Van Vuuren. Professor María Luisa Blázquez. Chief Executive Officer Business Unity South Africa Jerry Vilakazi. Chairman of the Board Warsaw School of Economics Bogdan Radomski. Commissioned Research Cornel Jahari. Director Michael Spicer. University of Dakar Diop Ibrahima Thione. Director Serbia Center for Advanced Economic Studies (CEVES) Jasna Atanasijevic. International Center for Competitiveness Antoni Subirà. The National Bank of Poland Mateusz Pipien. Mundo. Director Taiwan. Area Principal Carl F. Lim. Professor Switzerland University of St. Chief Economist Mark P. Minister of Economy and Trade State Planning Commission Tayseer Al-Ridawi. Director Planning 2 Chua Kia Chee. Associate Professor Katerina Marandi. Faculty of Economics Art Kovac˘ic˘. Researcher Alikul Isoev. Research Associate Alessandro Cembalo. Professor. Research and Statistics Unit Cheng Wai San. Associação para o Desenvolvimento da Engenharia Ilídio António de Ayala Serôdio. General Director Sri Lanka Institute of Policy Studies Manoj Thibbotuwawa. Project Manager Syria Ministry of Economy and Trade Amer Housni Louitfi. Member of the CEVES Council of Directors Dus˘ ko Vasiljevic. Economist Romania Group of Applied Economics (GEA) Anca Rusu. Executive Yuan Tain-Jy Chen. Projects Director Ireneusz Tomczak. Advisor Management Observatory Monika Nowacka. Chairman J. B. Project Coordinator The Ceylon Chamber of Commerce Harin Malwatte. Planning Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina. Researcher. Russia Igor Dukeov. Executive Director Michael B. Secretary General Qatar Qatari Businessmen Association (QBA) Issa Abdul Salam Abu Issa. Professor. Executive School of Management. Deputy Director Poland The Economic Institute. Member of the Board of Directors Adilia Lisboa. Faculty of Economics Ales˘ Vahc˘ic˘.

El Salvador. Chulalongkorn University Pongsak Hoontrakul. Director Tunisia Institut Arabe des Chefs d’Entreprises Majdi Hassen. Executive Director Vladimir Dubrovskiy. Research Director Chalongphob Sussangkarn. Leading Economist United Arab Emirates Economic & Policy Research Unit (EPRU). Director Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo. Dominican Republic. Graduate Researcher Uruguay Universidad ORT Isidoro Hodara. Honduras. Senior Research Fellow Toemsakdi Krishnamra. Zayed University Nico Vellinga. Survey Field Officer Januario Mok. Lecturer The Competitiveness Company Rolph Balgobin. Head of Department Trieu Thanh Son. Rector Ukraine CASE Ukraine. Senior Researcher Timor-Leste Timor-Leste Development Agency (ETDA) Harun Y. Project Coordinator Robyn Klingler. Panama INCAE Business School. Rector Lawrence Pratt. Professor and President Du Phuoc Tan. Latin American Center for Competitiveness and Sustainable Development (CLACDS) Arturo Condo. Deputy Director. Survey Supervisor Palmira Pires.M. Director of External Relations Latvia. Professor Bolivia. Professor Venezuela CONAPRI . Boavida. Coordinator Zimbabwe Graduate School of Management. Executive Director Litsay Guerrero. Research Associate Vietnam Central Institute for Economic Management (CIEM) Dinh Van An. President Phan Thanh Ha. Professor Dubai Competitiveness Council Adel Alfalasi. Distinguished Fellow Yos Vajragupta. Staff Development Fellow Jolly Kamwanga. Ecuador. London School of Economics and Political Science Adam Austerfield. Makerere University Robert Apunyo. Executive MBA Programme Director Anders Paalzow. Lithuania Stockholm School of Economics in Riga Karlis Kreslins. Executive Counsellor Chekib Nouira. Costa Rica. University of Zimbabwe A. Director of Sasin Piyachart Phiromswad. President Turkey TUSIAD Sabanci University Competitiveness Forum Dilek Cetindamar. Bull. Manager. Researcher Zambia Institute of Economic and Social Research (INESOR). Department of Macroeconomic Management Pham Hoang Ha. University of Zambia Mutumba M. Nicaragua. Project Manager. CLACDS Marlene de Estrella.Partner Institutes Thailand Sasin Graduate Institute of Business Administration. Director and Professor Funda Kalemci. Executive Director Balraj Kistow. Project Specialist x Uganda Makerere Institute of Social Research. Project Director Jane Lac.Venezuelan Council for Investment Promotion Gladis Genua. Executive Director Khawla Belqazi. Department of Macroeconomic Management Institute for Development Studies in HCMC (HIDS) Nguyen Trong Hoa. Director Patricia Funjika. Senior Researcher. Director. Senior Research Fellow Catherine Ssekimpi. Economic Affairs The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Hawkins. Center for Social and Economic Research Dmytro Boyarchuk. Faculty of Economics Thailand Development Research Institute (TDRI) Somchai Jitsuchon. Research Associate Delius Asiimwe. Special Projects Manager United Kingdom LSE Enterprise Ltd. CLACDS Luis Reyes.

Chief Business Officer at the Forum.Thierry Geiger. and The Travel & Tourism Competitiveness Report. World Economic Forum This year’s Global Competitiveness Report is published against the backdrop of the deepest global economic slowdown in generations. as well as various regional and country studies. Developing countries have not been spared from its fallout. and a more general liquidity shortage. Concurrent complementary publications include The Financial Development Report. Margareta Drzeniek Hanouz. this Report would have not been possible without the hard work and enthusiasm of our network of over 150 Partner Institutes worldwide who carry out the Executive Opinion Survey. In a difficult global economic environment. We thank the Africa Commission and FedEx.What began as a financial crisis in a handful of industrialized economies continues to spill over into the real economy. This Report remains the flagship publication within the Forum’s Global Competitiveness Network. Carissa Sahli. our partners in this Report. for the past 30 years.The Global Enabling Trade Report. for their support in this important venture.The Report is a contribution to enhancing the understanding of the key factors determining economic growth and to explaining why some countries are more successful than others in raising income levels and opportunities for their respective populations. rising unemployment. Appreciation also goes to Robert Greenhill. as well as team members Ciara Browne.The World Economic Forum has. This year’s Report features a total of 133 economies. at Columbia University. The Global Competitiveness Report could not have been put together without the thought leadership of Professor Xavier Sala-i-Martin. played a facilitating role in this process by providing detailed assessments of the productive potential of nations worldwide. Irene Mia.The Report contains a detailed profile for each of the economies featured in the study as well as an extensive section of data tables with global rankings covering over 100 indicators. and Jennifer Blanke. which produces a number of research studies that truly mirror the increased integration and complexity of the world economy. and mounting protectionist pressures worldwide. Pearl Samandari. it is more important than ever for countries to put into place strong fundamentals underpinning economic growth and development. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum xi . we would like to convey our sincere gratitude to all the business executives around the world who took the time to participate in our Executive Opinion Survey and whose valuable input made the publication of this Report possible.The Global Gender Gap Report. thus providing the most comprehensive assessment of its kind.Preface Preface KLAUS SCHWAB Executive Chairman. many are now facing slumping demand for their export products along with falling commodity prices. Head of the Global Competitiveness Network. Finally. Policymakers are presently struggling with ways of managing these new economic challenges while preparing their economies to perform well in a future economic landscape characterized by growing uncertainty. engendering massive contractions in consumer demand. and Eva Trujillo Herrera. significant reductions in foreign investment and remittances. who has provided ongoing intellectual support of our competitiveness research.The Global Information Technology Report. In addition. which provides the basis of this Report. hence it offers policymakers and business leaders an important tool in the formulation of improved economic policies and institutional reforms.The strong interdependence among the worlds’ economies makes this a truly global economic crisis in every sense.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

Part 1 Measuring Competitiveness The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

many countries are now facing slumping demand for their export products. the World Economic Forum’s annual competitiveness reports have examined the many factors enabling national economies to achieve sustained economic growth and long-term prosperity. Today’s difficult economic environment underscores the importance of not losing sight of long-term competitiveness fundamentals amid short-term urgencies. Competitive economies are those that have in place factors driving the productivity enhancements on which their present and future prosperity is built. which captures the microeconomic and macroeconomic foundations of national competitiveness. In this context. Although the developing world at first seemed to be spared from the fallout of this crisis. this decline is coupled with falling commodity prices and significant reductions in foreign investment and remittances.These emergency measures have been complemented by large stimulus packages and countercyclical policies intended to support the economy and facilitate recovery. rising unemployment.1 3 . our work serves as a critical reminder of the importance of taking into account the consequences of our present actions on future prosperity.What began as a financial crisis in the United States and the United Kingdom quickly turned into the largest global recession in decades. For the past three decades. Moreover. Since 2005.5 percent in 2009 as the financial crisis continues to spill over into the real economy. the World Economic Forum has based its competitiveness analysis on the Global Competitiveness Index (GCI).The Global Competitiveness Index 2009–2010: Contributing to Long-Term Prosperity amid the Global Economic Crisis XAVIER SALA-I-MARTIN JENNIFER BLANKE MARGARETA DRZENIEK HANOUZ THIERRY GEIGER IRENE MIA World Economic Forum The global economy continues to weather the most difficult climate in generations.1 engendering massive declines in consumer demand. All over the world governments have taken an active stance in addressing the crisis and the ensuing recession.World GDP is expected to contract by a record 2. a global liquidity shortage has negatively impacted access to finance for companies and governments alike. and mounting protectionist pressures worldwide. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. policymakers are being confronted with new economic management challenges.1: The Global Competitiveness Index 2009–2010 CHAPTER 1. In the current challenging economic environment. a highly comprehensive index. thus stimulating discussion on strategies to overcome them. Banks have been bailed out or nationalized on an unprecedented scale to buffer the immediate impact of the financial system’s collapse. Our goal over the years has been to provide benchmarking tools for business leaders and policymakers to identify obstacles to improved competitiveness.These developments have led observers to question the prevailing paradigm regarding the optimal level of state involvement in the economy. A competitivenesssupporting economic environment can help national economies to weather business cycle downturns and ensure that the mechanisms enabling solid economic performance going into the future are in place.

6 overregulation. lack of transparency and trustworthiness. transparent and wellfunctioning institutions.Well-developed infrastructure reduces the effect of distance between regions.This attempt has ranged from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure and.4 It influences investment decisions and the organization of production and plays a central role in the ways in which societies distribute the benefits and bear the costs of development strategies and policies. each of which reflects one aspect of the complex concept that we call competitiveness. technological progress (whether created within the country or adopted from abroad). Each of these conjectures rests on solid theoretical foundations.We group all these components into 12 pillars of competitiveness: First pillar: Institutions The institutional environment is determined by the legal and administrative framework within which individuals. and the public.1: The Global Competitiveness Index 2009–2010 4 We define competitiveness as the set of institutions.2 macroeconomic stability. along with numerous corporate scandals. and many others. The level of productivity. it is also one of the central determinants of the returns to investment.The central point. given the increasingly direct role played by the state in the economy of many countries. firm sophistication. to interest in other mechanisms such as education and training. we do not necessarily see large swings in comp-etitiveness rankings. policies. and governments interact to generate income and wealth in the economy. Economists have long tried to understand what determines the wealth of nations. as it is an important factor determining the location of economic activity and the kinds of activities or sectors that can develop in a particular economy. more recently. demand conditions. The GCI captures this open-ended dimension by providing a weighted average of many different components. Hundreds of econometric studies show that many of these conjectures are. firms. are also very important: excessive bureaucracy and red tape. It is critical for ensuring the effective functioning of the economy. sets the sustainable level of prosperity that can be earned by an economy. and factors that determine the level of productivity of a country. The quality of institutions has a strong bearing on competitiveness and growth. Because the rates of return are the fundamental drivers of the growth rates of the economy. owners of land. with the result of truly integrating the national market and connecting it at low cost to markets in other countries and regions. and maintaining investor and consumer confidence. or intellectual property are unwilling to invest in the improvement and upkeep of their property if their rights as owners are insecure. is that they are not mutually exclusive—two or more of them could be true at the same time. An economy is well served by businesses that are run honestly. despite the present global economic crisis.7 Proper management of the public finances is also critical to ensuring trust in the national business environment. the quality and extensiveness of infrastructure networks significantly impact economic growth and reduce income inequalities and poverty in a variety of The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . in turn.The productivity level also determines the rates of return obtained by investments in an economy. private institutions are also an important element in the process of wealth creation. in fact.3 This also can partly explain why. In addition. particularly among countries that have already put into place many of the elements driving productivity. simultaneously true.1. and can be brought about through the use of standards as well as auditing and accounting practices that ensure access to information in a timely manner. corporate shares. where managers abide by strong ethical practices in their dealings with the government. a more-competitive economy is one that is likely to grow faster in the medium to long run.8 Private-sector transparency is indispensable to business. The 12 pillars of competitiveness The determinants of competitiveness are many and complex. Although the economic literature has mainly focused on public institutions. good governance. which is one of the key factors explaining an economy’s growth potential. and the political dependence of the judicial system impose significant economic costs to businesses and slow the process of economic development. the rule of law. corruption. Government attitudes toward markets and freedoms. dishonesty in dealing with public contracts. In other words. other firms. has highlighted the relevance of accounting and reporting standards and transparency for preventing fraud and mismanagement.5 The role of institutions goes beyond the legal framework. The concept of competitiveness thus involves static and dynamic components: although the productivity of a country clearly determines its ability to sustain its level of income.We include indicators capturing the quality of government management of the public finances to complement the measures of macroeconomic stability captured by pillar 3 below. The recent global financial crisis. For example. ensuring good governance.The importance of a solid institutional environment has become even more apparent during the current crisis. more-competitive economies tend to be able to produce higher levels of income for their citizens. and the efficiency of its operations.9 Second pillar: Infrastructure Extensive and efficient infrastructure is an essential driver of competitiveness. market size. however.

1: The Global Competitiveness Index 2009–2010 ways. it is also recognized that macroeconomic disarray harms the economy. both domestic and foreign. Finally. Market efficiency also depends on demand conditions such as customer orientation and buyer sophistication. the economy cannot grow in a sustainable manner unless the macro environment is stable. workers who have received little formal education can carry out only simple manual work and find it much more difficult to adapt to more advanced production processes and techniques. as sick workers are often absent or operate at lower levels of efficiency. producing goods demanded by the market. Moreover. and facilitate the movement of workers to the most suitable jobs. therefore. and that decisions made by economic actors take into account all available relevant information. by ensuring that the most efficient firms. as it forces companies The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 5 . and services—such as quality roads. so it does not directly take into account the way in which public accounts are managed by the government.Third pillar: Macroeconomic stability The stability of the macroeconomic environment is important for business and. a solid and extensive telecommunications network allows for a rapid and free flow of information. Poor health leads to significant costs to business. which is increasingly important in today’s economy.This can create an important competitive advantage.10 In this regard. For example. Firms cannot operate efficiently when inflation rates are out of hand. Sixth pillar: Goods market efficiency Countries with efficient goods markets are well positioned to produce the right mix of products and services given supply-and-demand conditions. Running fiscal deficits limits the government’s future ability to react to business cycles. are those that thrive.This is an area where the crisis may prove to have positive longer-term effects. as well as moral. people. which increases overall economic efficiency by helping to ensure that businesses can communicate. Economies also depend on electricity supplies that are free of interruptions and shortages so that businesses and factories can work unimpeded. customers in some countries may be more demanding than in others. Healthy market competition. today’s globalizing economy requires economies to nurture pools of well-educated workers who are able to adapt rapidly to their changing environment.11 Although it is certainly true that macroeconomic stability alone cannot increase the productivity of a nation. Lack of basic education can therefore become a constraint on business development.Workers who are ill cannot function to their potential and will be less productive. It is important to note that this pillar focuses only on macroeconomic stability. with firms finding it difficult to move up the value chain by producing more-sophisticated or value-intensive products.The economic slowdown. with the consequent drop in trade and rise in unemployment. This qualitative dimension is captured in the public institutions subpillar described above. Effective modes of transport for goods. it will be essential to avoid significant reductions in resource allocation to these critical areas.The government cannot provide services efficiently if it has to make high-interest payments on its past debts. For the longer term. railroads. this pillar takes into account the quantity and quality of basic education received by the population. For cultural reasons. Fifth pillar: Higher education and training Quality higher education and training is crucial for economies that want to move up the value chain beyond simple production processes and products. is important for the overall competitiveness of a country. given that government budgets in many countries will need to be cut to reduce public debt brought about by the present stimulus spending.This pillar measures secondary and tertiary enrollment rates as well as the quality of education as assessed by the business community.Yet limiting global trade would not only amplify the current downturn.12 In addition to health. is important in driving market efficiency and thus business productivity. has increased the pressure on governments to adopt measures to protect domestic firms and jobs. ports. as well as to ensure that these goods can be most effectively traded in the economy. Fourth pillar: Health and primary education A healthy workforce is vital to a country’s competitiveness and productivity. competitiveness is hindered by distortionary or burdensome taxes and by restrictive and discriminatory rules on foreign direct investment (FDI)— limiting foreign ownership—as well as on international trade. In sum. a well-developed transport and communications infrastructure network is a prerequisite for the ability of less-developed communities to connect to core economic activities and basic services. Investment in the provision of health services is thus critical for clear economic. 1. given the central role of infrastructure development in many of the national stimulus packages in countries such as the United States and China. but in the longer term it would also reduce growth—in particular in developing countries.13 In particular.The best possible environment for the exchange of goods requires a minimum of impediments to business activity through government intervention. considerations.The extent of staff training is also taken into consideration because of the importance of vocational and continuous on-the-job training—which is neglected in many economies—for ensuring a constant upgrading of workers’ skills to the changing needs of the evolving economy. Basic education increases the efficiency of each individual worker. and air transport—enable entrepreneurs to get their goods and services to market in a secure and timely manner.

exports can be thought of as a substitute for domestic demand in determining the size of the market for the firms of a country. whether the technology used has or has not been developed within national borders is irrelevant for its effect on competitiveness. in this context. Labor markets must therefore have the flexibility to shift workers from one economic activity to another rapidly and at low cost.This leads.There is vast empirical evidence showing that trade openness is positively associated with growth.Therefore ICT access (including the presence of an ICT-friendly regulatory framework) and usage are included in the pillar as essential components of economies’ overall level of technological readiness. especially for small countries. which is captured in the 12th pillar below. Among the main sources of foreign technology. especially for countries with small domestic markets. the markets available to firms have been constrained by national borders.1. In particular.19 Thus. In this respect. we give credit to exportdriven economies and geographic areas (such as the European Union) that are broken into many countries but have one common market. rather than to the politically connected.15 Eighth pillar: Financial market sophistication 6 The present economic crisis has highlighted the central role of a sound and well-functioning financial sector for economic activity. Traditionally. Business investment is critical to productivity. This has been once again underscored by the liquidity crunch experienced by businesses and the public sector in developing and developed countries in recent times. Even if some recent research casts doubts on the robustness of this relationship. Tenth pillar: Market size The size of the market affects productivity because large markets allow firms to exploit economies of scale. Further lowering barriers to trade would support this process. It channels resources to those entrepreneurial or investment projects with the highest expected rates of return. in turn. international markets have become a substitute for domestic markets.16 In today’s globalized world. after four years of solid growth resulting in a record global FDI stock of US$1. Business sophistication concerns the quality of a country’s overall business networks as well as the quality of individual firms’ operations and The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Eleventh pillar: Business sophistication Business sophistication is conducive to higher efficiency in the production of goods and services. the banking sector needs to be trustworthy and transparent. technology has increasingly become an important element for firms to compete and prosper.1: The Global Competitiveness Index 2009–2010 to be more innovative and customer oriented and thus imposes the discipline necessary for efficiency to be achieved in the market.20 In today’s highly interdependent world. In the era of globalization.This development is due to shortages in finance and a more riskaverse attitude of businesses. especially for developing countries. FDI often plays a key role. recovery from the present downturn will require that countries increase the amount of goods that they purchase from each other.18 It is important to note that.9 trillion in 2007. In order to fulfill all those functions. By including both domestic and foreign markets in our measure of market size. venture capital. well-regulated securities exchanges. In this context. FDI has declined by an estimated 15 percent in 2008 with further deterioration expected for 2009. and to allow for wage fluctuations without much social disruption.14 Efficient labor markets must also ensure a clear relationship between worker incentives and their efforts. Ninth pillar: Technological readiness This pillar measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries. Seventh pillar: Labor market efficiency The efficiency and flexibility of the labor market are critical for ensuring that workers are allocated to their most efficient use in the economy and provided with incentives to give their best effort in their jobs. it is particularly worrisome that. thus spurring demand. as well as the best use of available talent—which includes equity in the business environment between women and men. and—as has been made so clear recently—financial markets need appropriate regulation to protect investors and other actors in the economy at large. thus enhancing a nation’s competitiveness. A thorough and proper assessment of risk is therefore a key ingredient. information and communication technologies (ICT) have evolved into the “general purpose technology” of our time.17 given the critical spillovers to the other economic sectors and their role as efficient infrastructure for commercial transactions. the level of technology available to firms in a country needs to be distinguished from the country’s ability to innovate and expand the frontiers of knowledge. to increased productivity. and other financial products. the general sense is that trade has a positive effect on growth.Therefore economies require sophisticated financial markets that can make capital available for private-sector investment from such sources as loans from a sound banking sector.That is why we separate technological readiness from innovation. An efficient financial sector allocates the resources saved by a nation’s citizens as well as those entering the economy from abroad to their most productive uses.The central point is that the firms operating in the country have access to advanced products and blueprints and the ability to use them.

reducing macroeconomic instability. standards of living can be expanded only with innovation. In this time of crisis. measures are reported for the 12 pillars separately because offering a more disaggregated analysis can be more useful to countries and practitioners: such an analysis gets closer to the actual areas in which a particular country needs to improve. 7th. it will be important to resist pressures to cut back on the R&D spending both at the private and public levels that will be so critical for sustainable growth going into the future. supported by both the public and the private sectors. when they must begin to develop more efficient production processes and increase product quality. the presence of a value chain. which we capture by using indicators of the quantity and quality of local suppliers and the extent of their interaction. or improving human capital.This is because Burkina Faso and Switzerland are in different stages of development: as countries move along the development path.Twelfth pillar: Innovation The final pillar of competitiveness is innovation. when the more basic sources of productivity improvements have been exhausted to a large extent. wages tend to increase and. It is particularly important for countries at an advanced stage of development. countries move into the efficiency-driven stage of development.The same is true for the efficiency of the labor. As wages rise with advancing development.1: The Global Competitiveness Index 2009–2010 strategies. and the ability to harness the benefits of existing technologies (pillar 9). financial. cannot be performed in countries with a poorly educated and poorly trained labor force (5th pillar). innovation (12th pillar) is not possible in a world without institutions (1st pillar) that guarantee intellectual property rights. and goods markets. sophisticated financial markets (pillar 8). all these factors eventually seem to run into diminishing returns. as countries move into the innovation-driven stage. in order to sustain this higher income. greater opportunities for innovation are created.This requires an environment that is conducive to innovative activity. and the production of unique and sophisticated products) all lead to sophisticated and modern business processes. Appendix A describes the exact composition of the GCI and technical details of its construction. is important for a variety of reasons. for those that have reached the innovation-driven stage of development.21 Although less-advanced countries can still improve their productivity by adopting existing technologies or making incremental improvements in other areas. this is no longer sufficient to increase productivity. The interrelation of the 12 pillars Although the 12 pillars of competitiveness are described separately. a large domestic and/or foreign market (pillar 10). and is more difficult in economies with inefficient markets (6th. Firms in these countries must design and develop cutting-edge products and processes to maintain a competitive edge.When companies and suppliers from a particular sector are interconnected in geographically proximate groups (“clusters”). in the first stage. To discern the extent to which the global recession is affecting the longer-term competitiveness of countries.22 According to the GCI. efficient goods markets (pillar 6). a stable macroeconomic framework (pillar 3). the economy is factor-driven and countries compete based on their factor endowments: primarily unskilled labor and natural resources. extensive collaboration in research between universities and industry. with their low productivity reflected in low wages. and barriers to entry for new firms are reduced. this should not obscure the fact that they are not independent: not only are they related to each other. marketing.The results of this survey are described in Box 1. In particular. 7 . Individual firms’ operations and strategies (branding. they are able to sustain higher wages and the associated standard of living only if their businesses are able to compete with new and unique products. building infrastructure. the World Economic Forum carried out a survey of selected experts. For example. and a healthy and literate workforce (pillar 4). competitiveness is increasingly driven by higher education and training (pillar 5). Finally. At this point. the presence of high-quality scientific research institutions. well-developed infrastructure (pillar 2). Innovation is particularly important for economies as they approach the frontiers of knowledge and the possibility of integrating and adapting exogenous technologies tends to disappear. but they tend to reinforce each other. and 8th pillars) or without extensive and efficient infrastructure (2nd pillar). Stages of development and the weighted Index It is clear that different pillars affect different countries differently: the best way for Burkina Faso to improve its competitiveness is not the same as the best way for Switzerland. this means sufficient investment in research and development (R&D) especially by the private sector. and the protection of intellectual property. labor productivity must improve. Although substantial gains can be obtained by improving institutions. well-functioning labor markets (pillar 7).The quality of a country’s business networks and supporting industries. In the long run. Companies compete on the basis of price and sell basic products or commodities. Although the actual construction of the Index will involve the aggregation of the 12 pillars into a single index. efficiency is heightened. At this The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (pillar 1).

This widely available measure is used as a proxy for wages. each critical to a particular stage of development. The concept of stages of development is integrated into the Index by attributing higher relative weights to those pillars that are relatively more relevant for a country given its particular stage of development. And the innovation and sophistication factors subindex includes the pillars critical to countries in the innovation-driven stage. The specific weights we attribute to each subindex in every stage of development are shown in Table 1. producing new and different goods using the most sophisticated production processes (pillar 11). A second criterion measures the extent to which countries are factor driven.The three subindexes are shown in Figure 1.The precise thresholds are shown in Table 2. Implementation of stages of development: Smooth transitions Countries are allocated to stages of development based on two criteria. the pillars are organized into three subindexes. although all 12 pillars matter to a certain extent for all countries. a maximum likelihood regression of GDP per capita was run against each subindex for past years.The efficiency enhancers subindex includes those pillars critical for countries in the efficiency-driven stage.23 The rounding of these econometric estimates led to the choice of weights displayed in Table 1.That is.We proxy this by the share of exports of mineral goods in total exports (goods and services) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . allowing for different coefficients for each stage of development. The basic requirements subindex groups those pillars most critical for countries in the factor-driven stage. To take this into account. Table 1: Weights of the three main subindexes at each stage of development Factordriven stage (%) Efficiencydriven stage (%) Innovationdriven stage (%) Basic requirements 60 40 20 Efficiency enhancers 35 50 50 5 10 30 Subindex Innovation and sophistication factors To obtain the precise weights. the relative importance of each one depends on a country’s particular stage of development.1: The Global Competitiveness Index 2009–2010 Figure 1: The 12 pillars of competitiveness Basic requirements • • • • Institutions Infrastructure Macroeconomic stability Health and primary education • • • • • • Higher education and training Goods market efficiency Labor market efficiency Financial market sophistication Technological readiness Market size Key for factor-driven economies Efficiency enhancers Key for efficiency-driven economies Innovation and sophistication factors Key for innovation-driven • Business sophistication • Innovation economies 8 stage.1. as internationally comparable data for the latter are not available for all countries covered.The first is the level of GDP per capita at market exchange rates. companies must compete through innovation (pillar 12).

The concept of competitiveness captures the medium- to longterm productivity and growth prospects of national economies.
In other words, although business cycle movements affect
countries’ short-term growth prospects, as witnessed in the
present economic downturn, they should have no impact on
competitiveness assessments unless they have longer-term
consequences for the competitiveness drivers discussed in
this chapter.
In order to get a sense of the extent to which the global
recession is affecting the longer-term competitiveness of
countries, the World Economic Forum carried out a survey of
selected leading macro and business economists from the
Forum’s economy-related Global Agenda Councils,1 along with
four international associations of business economists.2 A total
of 16 leading economists were surveyed. The survey is intended
to complement the analysis of the Global Competitiveness Index
(GCI) by providing the insight of experts on the matter.
Respondents were asked to rate the degree to which
they believe the present global recession will have a positive or
negative impact, on a scale of 1 (negative) to 7 (positive), on
selected countries, with 4 (the central value) indicating that
the recession will have no impact. They were also asked to
describe the mechanisms by which the recession would have
positive or negative impacts on countries. The 37 countries
included were those ranked in the top 20 of last year’s GCI, and
other key regional economies.
Figure 1 shows the average score for each economy
covered by the exercise (shown by a white dot), as well as
the spread in scores (the highest and lowest scores given,
shown by the blue line). Economies have been grouped in a
number of different clusters according to the perceived impact
of the crisis on their competitiveness perspective (ranging
from slightly positive to negative). In addition, the last columns
display each country’s GCI rank for this year, as well as
changes to the competitiveness rankings since last year for
every economy considered (improvements are indicated by an
upward arrow, declines are represented by downward arrows,
and sideways arrows indicate no change).
The first point to note about the survey results shown in
the figure is that the average assessments are skewed downward, with only five economies above the “no impact” value of
4. In other words, of all countries considered, the experts on
average believe that only Brazil, India, and China (the three
largest BRIC economies), along with Australia and Canada,
are likely to see their competitiveness improving slightly as a
consequence of the global recession. A further two economies
are expected, on average, to see no impact on their competitiveness from the recession (Norway and Hong Kong). For the
remaining 30 economies covered, the average assessment
ranges from slightly negative to negative.
Taking into account the general downward bias of the
results, the average responses to the survey are broadly in
line with the changes in the GCI rankings since last year, with
some exceptions. In particular, Brazil—perceived by the experts
as the country that will likely see its competitiveness most
favorably affected by the crisis—improved 8 places since last

year, continuing to build on an upward trend started in 2007 and
narrowing the competitiveness gap vis-à-vis fellow BRIC
economies India and China. Indeed, all countries in the slightly
positive or no impact groups at the top of the figure either
improve in rank (India, China, Australia, Canada, and Norway),
or remain stable (Hong Kong). The remaining BRIC economy,
Russia, lost 12 places in the GCI assessment; it is also rated
as one of the countries most likely to be negatively affected by
the global crisis. The recession is expected to be particularly
harmful for the competitiveness of Iceland and Spain, the two
countries receiving the lowest average scores in the sample,
both of which also drop in the GCI ranking this year. Yet, for a
handful of countries, the GCI and the economists’ assessment
diverges. This is particularly noticeable within the “negative”
category for Argentina, Hungary, Italy, and Japan, although
the improvements in the GCR ranking since last year remain
somewhat small in all cases.
Another important characteristic of the survey results is
the great variation in responses concerning the likely impact
of the global recession on each country. The blue bars in the
figure show the range of the lowest and highest responses. The
country engendering the greatest agreement, Switzerland, still
includes assessments that range from 2 (negative) to 4 (no
impact). The largest variations are for Latin American countries:
the results for Argentina, Mexico, and Venezuela range from the
worst possible value (1) to the second-to-highest possible value
(6).This demonstrates the extent of uncertainty even among
expert economists on the longer-term impacts of the crisis.
When asked to describe their reasons for pessimism and
optimism for the longer-term outlook, the experts highlighted a
number of factors that could have either positive or negative
impacts on longer-term competitiveness. The reasons for pessimism were related primarily to concerns about excessive government intervention and lack of access to credit. Specific-ally,
experts mentioned enhanced government intervention combined with blurred boundaries among institutions and
rules; the non-optimal allocation of resources to education
and transportation infrastructure through stimulus packages;
massive debts accrued, especially in the West, likely prompting
either sharp public-sector spending cuts or tax increases; the
push for harsher financial regulations that would further hinder
allocation of credit and risk new business investment; and
more general difficulties in obtaining capital for pro-growth
investment.
On the other hand, a number of positive implications for
longer-term competitiveness potential were also noted by the
experts. These include the possible reorientation of export-led
economies to domestic demand and neutral exchange rates;
increased awareness of the need of investment in pro-growth
areas, notably education; lagging institutions brought into international compliance; a rethinking of the US dollar’s impact and
of the consequences of focusing only on the US markets for
many exporters; enhanced incentives to clean up non-competitive enterprises and all sectors that had been kept alive during
the boom period; and a potential push to fix long- overdue
structural problems.
(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Box 1: An expert assessment of national competitiveness prospects

9

Figure 1: Survey of experts results and GCI variation (2009–2010)
GCI
Country/Economy

1

4

7

Impact

China
Australia

SLIGHTLY
POSITIVE

India

49 . . . . . . . . . . . . . . . . . . 1

14 . . . . . . . . . . . . . . . . . . 1

29 . . . . . . . . . . . . . . . . . . 1
15 . . . . . . . . . . . . . . . . . . 3
9 . . . . . . . . . . . . . . . . . . 1

Canada
Norway
Hong Kong SAR

11 . . . . . . . . . . . . . . . . . .—

3 . . . . . . . . . . . . . . . . . . 2

Singapore

6 . . . . . . . . . . . . . . . . . .—

54 . . . . . . . . . . . . . . . . . . 1

Indonesia

28 . . . . . . . . . . . . . . . . . . 1

Saudi Arabia

5 . . . . . . . . . . . . . . . . . . 2

Denmark

12 . . . . . . . . . . . . . . . . . . 5

Taiwan, China

10 . . . . . . . . . . . . . . . . . . 2

Netherlands

1 . . . . . . . . . . . . . . . . . . 1

Switzerland
SLIGHTLY NEGATIVE

Korea, Rep.
Sweden
Egypt
Turkey
United Arab Emirates
South Africa

19 . . . . . . . . . . . . . . . . . . 6
4 . . . . . . . . . . . . . . . . . .—

74 . . . . . . . . . . . . . . . . . . 7

61 . . . . . . . . . . . . . . . . . . 2
23 . . . . . . . . . . . . . . . . . . 8
45 . . . . . . . . . . . . . . . . . .—

17 . . . . . . . . . . . . . . . . . . 3

Austria

18 . . . . . . . . . . . . . . . . . . 1

Belgium

16 . . . . . . . . . . . . . . . . . .—

France

7 . . . . . . . . . . . . . . . . . .—

Germany

60 . . . . . . . . . . . . . . . . . .—

Mexico

2 . . . . . . . . . . . . . . . . . . 1

United States

46 . . . . . . . . . . . . . . . . . . 7

Poland

48 . . . . . . . . . . . . . . . . . . 1

Italy

58 . . . . . . . . . . . . . . . . . . 4

Hungary
NEGATIVE

Russian Federation
United Kingdom
Argentina
Japan

63 . . . . . . . . . . . . . . . . . 12

13 . . . . . . . . . . . . . . . . . . 1
85 . . . . . . . . . . . . . . . . . . 3
8 . . . . . . . . . . . . . . . . . . 1

113 . . . . . . . . . . . . . . . . . . 8

Venezuela

33 . . . . . . . . . . . . . . . . . . 4

Spain

26 . . . . . . . . . . . . . . . . . . 6

Iceland
Note:

Change

56 . . . . . . . . . . . . . . . . . . 8

Brazil

Finland

10

Rank

NONE

1.1: The Global Competitiveness Index 2009–2010

Box 1: An expert assessment of national competitiveness prospects (cont’d.) 

indicates that there has been no change since last year; indicates a positive change;  indicates a negative change.

The data also reveal a difference in the level of pessimism
or optimism of the macroeconomists, who constitute the academic respondents, compared with the business economists,
who are practitioners involved in business activities. As Table
1 shows, the business economists remain measurably more
pessimistic than the academic economists about the impact
of the present crisis on longer-term national competitiveness.
Specifically, while the macroeconomists are on average more
optimistic about the impact on the competitiveness outlook
for 25 countries, the business economists are more optimistic
in only 7 cases. The two groups share the same opinion on
average in 5 cases.

The results of the survey highlight the extent to which
competitiveness is a complex phenomenon that is difficult to
quantify precisely. Importantly, the potential positive effects
of the crisis described by the experts underline the ways in
which countries now have an opportunity to implement reforms
that will place them on a stronger footing to ride out the next
economic crisis and to ensure strong competitiveness going
forward.

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Table 1: Comparison of responses from business economists and macroeconomists

Country/Economy

Austria
Belgium
Denmark
Finland
France
Germany
Hungary
Iceland
Italy
Netherlands
Norway
Poland
Russia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Argentina
Brazil
Canada
Mexico
United States
Venezuela
Australia
China
Hong Kong SAR
India
Indonesia
Japan
Korea, Rep.
Singapore
Taiwan, China
Egypt
Saudi Arabia
South Africa
United Arab Emirates

Business

Macro-

economists

economists

Difference

2.83
3.00
3.43
3.71
3.13
3.13
2.29
1.57
2.63
3.63
4.00
2.57
2.56
2.00
3.00
3.43
3.00
2.50
2.25
4.50
3.88
2.56
2.89
2.50
4.38
4.33
4.00
4.50
3.43
2.29
3.43
3.86
3.57
3.17
3.33
3.33
3.00

3.57
3.43
3.71
3.57
3.29
3.29
3.29
2.43
3.00
3.43
4.00
3.43
3.00
2.71
3.71
3.43
3.57
3.00
3.33
4.33
4.33
3.83
3.29
2.83
4.14
4.29
4.00
4.29
3.86
3.14
3.43
4.00
3.57
3.50
3.83
3.17
3.67

–0.74
–0.43
–0.29
0.14
–0.16
–0.16
–1.00
–0.86
–0.38
0.20
0.00
–0.86
–0.44
–0.71
–0.71
0.00
–0.57
–0.50
–1.08
0.17
–0.46
–1.28
–0.40
–0.33
0.23
0.05
0.00
0.21
–0.43
–0.86
0.00
–0.14
0.00
–0.33
–0.50
0.17
–0.67

Notes

1 More information on the Global Agenda Councils can be found at http://www.weforum.org/en/about/GlobalAgendaCouncils/index.htm.
2 The groups surveyed are the Conference of Business Economists, the National Business Economic Issues Council, the European Council of
Economists, and the Harvard Industrial Economists Group.

and assume that countries that export more than 70
percent of mineral products (measured using a five-year
average) are to a large extent factor driven.24

Table 2: Income thresholds for establishing stages of
development
Stage of development

GDP per capita (in US$)

Stage 1: Factor driven

Transition from Stage 1 to Stage 2
Stage 2: Efficiency driven
Transition from Stage 2 to Stage 3
Stage 3: Innovation driven

< 2,000
2,000–3,000
3,000–9,000
9,000–17,000
> 17,000

Countries falling in between two of the three stages
are considered to be “in transition.” For these countries,
the weights change smoothly as a country develops,
reflecting the smooth transition from one stage of development to another. By introducing this type of transition between stages into the model—that is, by placing
increasingly more weight on those areas that are becoming
more important for the country’s competitiveness as it
develops—the Index can gradually “penalize” those
countries that are not preparing for the next stage.The
classification of countries into stages of development is
shown in Table 3.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Box 1: An expert assessment of national competitiveness prospects (cont’d.)

11

1.1: The Global Competitiveness Index 2009–2010

12

Table 3: List of countries/economies at each stage of development
Stage 1

Transition from 1 to 2

Stage 2

Transition from 2 to 3

Stage 3

Bangladesh
Benin
Bolivia
Burkina Faso
Burundi
Cambodia
Cameroon
Chad
Côte d’Ivoire
Ethiopia
Gambia, The
Ghana
Guyana
Honduras
India
Kenya
Kyrgyz Republic
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mongolia
Mozambique
Nepal
Nicaragua
Nigeria
Pakistan
Philippines
Senegal
Sri Lanka
Tajikistan
Tanzania
Timor-Leste
Uganda
Vietnam
Zambia
Zimbabwe

Algeria
Azerbaijan
Botswana
Brunei Darussalam
Egypt
Georgia
Guatemala
Indonesia
Jamaica
Kazakhstan
Kuwait
Libya
Morocco
Paraguay
Qatar
Saudi Arabia
Syria
Venezuela

Albania
Argentina
Armenia
Bosnia and Herzegovina
Brazil
Bulgaria
China
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Jordan
Macedonia, FYR
Malaysia
Mauritius
Montenegro
Namibia
Panama
Peru
Serbia
South Africa
Suriname
Thailand
Tunisia
Ukraine

Bahrain
Barbados
Chile
Croatia
Hungary
Latvia
Lithuania
Mexico
Oman
Poland
Romania
Russian Federation
Turkey
Uruguay

Australia
Austria
Belgium
Canada
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hong Kong SAR
Iceland
Ireland
Israel
Italy
Japan
Korea, Rep.
Luxembourg
Malta
Netherlands
New Zealand
Norway
Portugal
Puerto Rico
Singapore
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Taiwan, China
Trinidad and Tobago
United Arab Emirates
United Kingdom
United States

Country coverage
One country covered last year, Moldova, is not covered
this year because of a lack of Survey data.This has led
to a decrease in country coverage to a total of 133
economies this year.

The Global Competitiveness Index 2009–2010 rankings
The detailed rankings from this year’s GCI are shown
in Tables 4 through 8. As Table 4 shows, all of the countries in the top 10 remain the same as last year, with
some shifts in rank.The following sections discuss the
findings of the GCI 2009–2010 for the top performers
globally, as well as for a number of selected economies
in each of the five following regions: Europe, Latin

America and the Caribbean, Asia and the Pacific,
Middle East and North Africa, and sub-Saharan Africa.
The reader should note that, as in any benchmarking
exercise of this nature, the data are necessarily subject to
a time lag and do not fully capture economic circumstances at the time of publication. However, this does not
significantly hinder our ability to assess competitiveness,
given its medium- to long-term nature.

Top 10
The GCI results for the top 10 countries show a measurable decline in average score since last year, dropping
from 5.51 out of a possible maximum score of 7 last
year to 5.45 this year. In other words, it appears that in

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

GCI 2009–2010
Country/Economy

Switzerland
United States
Singapore
Sweden
Denmark
Finland
Germany
Japan
Canada
Netherlands
Hong Kong SAR
Taiwan, China
United Kingdom
Norway
Australia
France
Austria
Belgium
Korea, Rep.
New Zealand
Luxembourg
Qatar
United Arab Emirates
Malaysia
Ireland
Iceland
Israel
Saudi Arabia
China
Chile
Czech Republic
Brunei Darussalam
Spain
Cyprus
Estonia
Thailand
Slovenia
Bahrain
Kuwait
Tunisia
Oman
Puerto Rico
Portugal
Barbados
South Africa
Poland
Slovak Republic
Italy
India
Jordan
Azerbaijan
Malta
Lithuania
Indonesia
Costa Rica
Brazil
Mauritius
Hungary
Panama
Mexico
Turkey
Montenegro
Russian Federation
Romania
Uruguay
Botswana
Kazakhstan
Latvia

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68

5.60
5.59
5.55
5.51
5.46
5.43
5.37
5.37
5.33
5.32
5.22
5.20
5.19
5.17
5.15
5.13
5.13
5.09
5.00
4.98
4.96
4.95
4.92
4.87
4.84
4.80
4.80
4.75
4.74
4.70
4.67
4.64
4.59
4.57
4.56
4.56
4.55
4.54
4.53
4.50
4.49
4.48
4.40
4.35
4.34
4.33
4.31
4.31
4.30
4.30
4.30
4.30
4.30
4.26
4.25
4.23
4.22
4.22
4.21
4.19
4.16
4.16
4.15
4.11
4.10
4.08
4.08
4.06

GCI 2008–2009

GCI 2009–2010

Rank*

Country/Economy

Rank

2
1
5
4
3
6
7
9
10
8
11
17
12
15
18
16
14
19
13
24
25
26
31
21
22
20
23
27
30
28
33
39
29
40
32
34
42
37
35
36
38
41
43
47
45
53
46
49
50
48
69
52
44
55
59
64
57
62
58
60
63
65
51
68
75
56
66
54

Colombia
Egypt
Greece
Croatia
Morocco
Namibia
Vietnam
Bulgaria
El Salvador
Peru
Sri Lanka
Guatemala
Gambia, The
Ukraine
Algeria
Macedonia, FYR
Argentina
Trinidad and Tobago
Philippines
Libya
Honduras
Georgia
Jamaica
Senegal
Serbia
Syria
Dominican Republic
Albania
Armenia
Kenya
Nigeria
Tanzania
Pakistan
Suriname
Benin
Guyana
Ecuador
Bangladesh
Lesotho
Uganda
Bosnia and Herzegovina
Cambodia
Cameroon
Zambia
Venezuela
Ghana
Nicaragua
Côte d’Ivoire
Mongolia
Ethiopia
Malawi
Bolivia
Madagascar
Tajikistan
Kyrgyz Republic
Paraguay
Nepal
Timor-Leste
Mauritania
Burkina Faso
Mozambique
Mali
Chad
Zimbabwe
Burundi

69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133

Score

4.05
4.04
4.04
4.03
4.03
4.03
4.03
4.02
4.02
4.01
4.01
3.96
3.96
3.95
3.95
3.95
3.91
3.91
3.90
3.90
3.86
3.81
3.81
3.78
3.77
3.76
3.75
3.72
3.71
3.67
3.65
3.59
3.58
3.57
3.56
3.56
3.56
3.55
3.54
3.53
3.53
3.51
3.50
3.50
3.48
3.45
3.44
3.43
3.43
3.43
3.42
3.42
3.42
3.38
3.36
3.35
3.34
3.26
3.25
3.23
3.22
3.22
2.87
2.77
2.58

GCI 2008–2009
Rank*

74
81
67
61
73
80
70
76
79
83
77
84
87
72
99
89
88
92
71
91
82
90
86
96
85
78
98
108
97
93
94
113
101
103
106
115
104
111
123
128
107
109
114
112
105
102
120
110
100
121
119
118
125
116
122
124
126
129
131
127
130
117
134
133
132

*The 2008–2009 rank is out of 134 countries. One country covered last year,
Moldova, had to be excluded this year for lack of Survey data.

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Table 4: The Global Competitiveness Index 2009–2010 rankings and 2008–2009 comparisons

13

1.1: The Global Competitiveness Index 2009–2010

14

Table 5: The Global Competitiveness Index 2009–2010
SUBINDEXES
OVERALL INDEX
Country/Economy

Switzerland
United States
Singapore
Sweden
Denmark
Finland
Germany
Japan
Canada
Netherlands
Hong Kong SAR
Taiwan, China
United Kingdom
Norway
Australia
France
Austria
Belgium
Korea, Rep.
New Zealand
Luxembourg
Qatar
United Arab Emirates
Malaysia
Ireland
Iceland
Israel
Saudi Arabia
China
Chile
Czech Republic
Brunei Darussalam
Spain
Cyprus
Estonia
Thailand
Slovenia
Bahrain
Kuwait
Tunisia
Oman
Puerto Rico
Portugal
Barbados
South Africa
Poland
Slovak Republic
Italy
India
Jordan
Azerbaijan
Malta
Lithuania
Indonesia
Costa Rica
Brazil
Mauritius
Hungary
Panama
Mexico
Turkey
Montenegro
Russian Federation
Romania
Uruguay
Botswana
Kazakhstan

Basic requirements

Efficiency enhancers

Innovation factors

Rank

Score

Rank

Score

Rank

Score

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

5.60
5.59
5.55
5.51
5.46
5.43
5.37
5.37
5.33
5.32
5.22
5.20
5.19
5.17
5.15
5.13
5.13
5.09
5.00
4.98
4.96
4.95
4.92
4.87
4.84
4.80
4.80
4.75
4.74
4.70
4.67
4.64
4.59
4.57
4.56
4.56
4.55
4.54
4.53
4.50
4.49
4.48
4.40
4.35
4.34
4.33
4.31
4.31
4.30
4.30
4.30
4.30
4.30
4.26
4.25
4.23
4.22
4.22
4.21
4.19
4.16
4.16
4.15
4.11
4.10
4.08
4.08

3
28
2
5
4
1
8
27
10
12
6
18
26
11
14
15
13
20
23
16
7
17
9
33
37
24
42
30
36
32
45
19
38
21
34
43
29
22
40
35
25
44
39
31
77
71
54
67
79
46
50
41
47
70
62
91
51
58
55
59
69
65
64
86
49
63
74

5.98
5.23
5.99
5.96
5.98
6.04
5.85
5.27
5.74
5.71
5.90
5.47
5.29
5.73
5.63
5.60
5.70
5.43
5.40
5.58
5.85
5.57
5.75
5.12
5.06
5.36
4.88
5.17
5.09
5.14
4.78
5.44
5.06
5.43
5.10
4.86
5.18
5.41
5.02
5.09
5.30
4.84
5.05
5.16
4.26
4.30
4.61
4.38
4.18
4.74
4.63
4.97
4.68
4.30
4.44
4.04
4.63
4.48
4.54
4.47
4.34
4.43
4.43
4.10
4.64
4.43
4.27

3
1
2
7
6
12
14
11
4
10
5
17
8
13
9
16
19
18
20
15
23
28
21
25
22
30
26
38
32
33
24
76
29
41
27
40
37
44
63
56
53
36
43
60
39
31
34
46
35
66
71
48
47
50
58
42
72
45
70
55
54
65
52
49
82
87
69

5.39
5.66
5.61
5.31
5.36
5.17
5.12
5.21
5.39
5.26
5.37
5.06
5.31
5.14
5.29
5.08
4.98
5.04
4.92
5.11
4.84
4.67
4.89
4.76
4.87
4.64
4.72
4.49
4.56
4.55
4.78
3.94
4.66
4.45
4.69
4.46
4.49
4.39
4.08
4.14
4.18
4.50
4.40
4.11
4.47
4.56
4.55
4.37
4.52
4.06
4.03
4.31
4.33
4.24
4.13
4.41
4.01
4.38
4.04
4.15
4.16
4.06
4.20
4.25
3.86
3.77
4.04

3
1
10
4
7
6
5
2
12
9
23
8
14
18
21
15
11
13
16
27
22
36
25
24
20
19
17
33
29
43
26
81
35
32
42
47
30
60
64
45
52
31
41
49
39
46
57
34
28
51
56
48
53
40
37
38
65
61
54
67
58
68
73
75
77
92
78

5.68
5.71
5.15
5.53
5.28
5.47
5.47
5.70
4.96
5.17
4.53
5.25
4.92
4.83
4.61
4.90
5.00
4.95
4.88
4.37
4.58
4.10
4.41
4.43
4.63
4.70
4.87
4.15
4.23
3.96
4.40
3.42
4.14
4.18
3.98
3.83
4.23
3.69
3.62
3.94
3.75
4.21
3.98
3.81
4.05
3.84
3.71
4.15
4.24
3.79
3.71
3.83
3.75
4.03
4.08
4.08
3.59
3.67
3.73
3.57
3.70
3.56
3.47
3.44
3.44
3.25
3.43

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

SUBINDEXES
OVERALL INDEX
Country/Economy

Latvia
Colombia
Egypt
Greece
Croatia
Morocco
Namibia
Vietnam
Bulgaria
El Salvador
Peru
Sri Lanka
Guatemala
Gambia, The
Ukraine
Algeria
Macedonia, FYR
Argentina
Trinidad and Tobago
Philippines
Libya
Honduras
Georgia
Jamaica
Senegal
Serbia
Syria
Dominican Republic
Albania
Armenia
Kenya
Nigeria
Tanzania
Pakistan
Suriname
Benin
Guyana
Ecuador
Bangladesh
Lesotho
Uganda
Bosnia and Herzegovina
Cambodia
Cameroon
Zambia
Venezuela
Ghana
Nicaragua
Côte d’Ivoire
Mongolia
Ethiopia
Malawi
Bolivia
Madagascar
Tajikistan
Kyrgyz Republic
Paraguay
Nepal
Timor-Leste
Mauritania
Burkina Faso
Mozambique
Mali
Chad
Zimbabwe
Burundi

Basic requirements

Efficiency enhancers

Innovation factors

Rank

Score

Rank

Score

Rank

Score

Rank

Score

68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133

4.06
4.05
4.04
4.04
4.03
4.03
4.03
4.03
4.02
4.02
4.01
4.01
3.96
3.96
3.95
3.95
3.95
3.91
3.91
3.90
3.90
3.86
3.81
3.81
3.78
3.77
3.76
3.75
3.72
3.71
3.67
3.65
3.59
3.58
3.57
3.56
3.56
3.56
3.55
3.54
3.53
3.53
3.51
3.50
3.50
3.48
3.45
3.44
3.43
3.43
3.43
3.42
3.42
3.42
3.38
3.36
3.35
3.34
3.26
3.25
3.23
3.22
3.22
2.87
2.77
2.58

60
83
78
56
52
57
53
92
80
66
88
89
82
76
94
61
73
84
48
95
68
87
85
101
96
97
72
98
90
81
120
118
103
114
75
99
105
93
108
102
110
100
112
107
117
104
127
113
121
123
111
124
106
115
116
126
122
119
109
125
130
129
128
131
132
133

4.45
4.12
4.21
4.49
4.62
4.49
4.61
4.02
4.13
4.39
4.06
4.05
4.13
4.26
3.96
4.44
4.27
4.11
4.67
3.94
4.38
4.10
4.10
3.74
3.93
3.90
4.30
3.82
4.04
4.13
3.49
3.51
3.71
3.53
4.26
3.78
3.69
4.00
3.60
3.71
3.58
3.74
3.55
3.68
3.51
3.70
3.40
3.54
3.49
3.48
3.56
3.43
3.68
3.52
3.51
3.40
3.49
3.50
3.60
3.43
3.25
3.26
3.30
2.92
2.71
2.49

51
64
80
57
67
91
90
61
62
83
59
74
81
101
68
117
85
84
79
78
110
95
89
73
96
86
112
88
93
99
75
77
104
92
126
121
107
113
97
116
102
100
103
119
98
108
94
114
109
106
120
105
128
118
123
111
115
125
132
129
122
124
127
131
130
133

4.21
4.07
3.87
4.13
4.05
3.71
3.72
4.08
4.08
3.85
4.11
3.95
3.86
3.49
4.05
3.29
3.83
3.84
3.90
3.91
3.36
3.54
3.73
3.95
3.54
3.77
3.35
3.77
3.63
3.51
3.94
3.91
3.45
3.69
3.14
3.25
3.40
3.34
3.54
3.31
3.49
3.50
3.49
3.27
3.52
3.38
3.58
3.32
3.38
3.42
3.26
3.43
3.08
3.28
3.22
3.36
3.32
3.15
2.78
3.01
3.22
3.19
3.09
2.81
2.87
2.68

86
62
71
66
72
88
91
55
89
87
85
44
63
69
80
122
93
76
79
74
111
96
117
83
59
94
100
82
121
112
50
70
95
84
118
104
110
123
114
101
103
127
107
106
90
130
108
116
98
120
115
97
133
99
109
128
131
129
132
125
105
113
102
126
124
119

3.36
3.67
3.51
3.59
3.49
3.35
3.26
3.72
3.29
3.36
3.37
3.95
3.66
3.55
3.42
2.88
3.23
3.44
3.42
3.45
3.04
3.21
2.94
3.39
3.69
3.21
3.17
3.41
2.90
3.03
3.80
3.53
3.21
3.39
2.94
3.12
3.06
2.88
3.00
3.16
3.14
2.80
3.08
3.11
3.26
2.76
3.08
2.96
3.20
2.93
2.98
3.21
2.63
3.20
3.06
2.80
2.70
2.77
2.68
2.83
3.12
3.00
3.14
2.81
2.86
2.94

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Table 5: The Global Competitiveness Index 2009–2010 (cont’d.)

15

1.1: The Global Competitiveness Index 2009–2010

16

Table 6: The Global Competitiveness Index: Basic requirements
PILLARS
BASIC REQUIREMENTS
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Côte d’Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Gambia, The
Georgia
Germany
Ghana
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho

1. Institutions

2. Infrastructure

3. Macroeconomic
stability

4. Health and
primary education

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

90
61
84
81
14
13
50
22
108
31
20
99
106
100
63
91
19
80
130
133
112
107
10
131
32
36
83
62
121
52
21
45
4
98
93
78
66
34
111
1
15
76
85
8
127
56
82
105
87
6
58
24
79
70
37
42
67
101
27
46
74
120
23
40
126
60
102

4.04
4.44
4.11
4.13
5.63
5.70
4.63
5.41
3.60
5.16
5.43
3.78
3.68
3.74
4.43
4.04
5.44
4.13
3.25
2.49
3.55
3.68
5.74
2.92
5.14
5.09
4.12
4.44
3.49
4.62
5.43
4.78
5.98
3.82
4.00
4.21
4.39
5.10
3.56
6.04
5.60
4.26
4.10
5.85
3.40
4.49
4.13
3.69
4.10
5.90
4.48
5.36
4.18
4.30
5.06
4.88
4.38
3.74
5.27
4.74
4.27
3.49
5.40
5.02
3.40
4.45
3.71

87
115
126
95
12
14
55
30
122
20
24
79
132
128
29
93
36
116
71
129
92
112
17
131
35
48
101
47
127
85
22
62
3
117
125
56
91
31
75
4
26
27
72
16
68
70
108
103
99
11
76
13
54
58
19
39
97
82
28
25
86
107
53
51
124
65
89

3.62
3.20
2.94
3.49
5.60
5.55
4.15
4.88
3.09
5.18
4.98
3.72
2.50
2.89
4.89
3.50
4.78
3.19
3.82
2.75
3.51
3.24
5.50
2.71
4.78
4.39
3.37
4.42
2.91
3.65
5.03
3.93
6.08
3.19
2.97
4.13
3.52
4.85
3.78
6.05
4.95
4.91
3.82
5.50
3.87
3.83
3.26
3.32
3.37
5.62
3.77
5.58
4.21
4.00
5.21
4.64
3.44
3.70
4.90
4.97
3.64
3.27
4.23
4.31
2.98
3.91
3.54

104
99
88
81
25
9
58
27
126
21
18
117
122
128
61
74
41
102
115
125
95
121
7
133
30
46
83
82
73
49
24
48
12
85
100
55
51
34
96
10
3
60
72
1
87
47
68
91
77
2
57
11
76
84
52
44
59
67
13
42
75
92
17
50
124
56
114

2.84
2.91
3.11
3.25
5.19
5.89
4.03
4.96
2.39
5.37
5.58
2.58
2.47
2.18
3.93
3.50
4.55
2.88
2.60
2.41
2.94
2.49
5.93
1.90
4.93
4.31
3.20
3.24
3.54
4.26
5.22
4.27
5.83
3.16
2.91
4.07
4.20
4.67
2.94
5.87
6.52
3.95
3.60
6.59
3.14
4.31
3.78
3.03
3.39
6.54
4.04
5.85
3.47
3.20
4.19
4.42
3.99
3.84
5.83
4.45
3.49
3.01
5.60
4.23
2.41
4.04
2.62

95
2
48
53
18
37
27
5
84
115
56
54
60
69
41
109
1
45
118
132
122
34
31
82
19
8
72
101
89
50
39
43
14
94
44
120
61
47
116
12
58
92
117
30
129
103
88
127
85
16
83
119
96
52
65
67
102
131
97
105
59
121
11
3
125
99
29

4.24
6.39
4.87
4.78
5.56
5.22
5.30
5.97
4.45
3.80
4.74
4.77
4.70
4.61
5.06
3.93
6.64
4.93
3.60
1.05
3.40
5.24
5.24
4.50
5.48
5.93
4.59
4.11
4.43
4.83
5.15
4.99
5.71
4.28
4.99
3.46
4.68
4.90
3.76
5.78
4.72
4.32
3.73
5.28
2.68
4.02
4.43
3.00
4.44
5.67
4.50
3.57
4.23
4.82
4.63
4.62
4.11
2.25
4.22
3.97
4.71
3.43
5.80
6.23
3.25
4.20
5.29

66
77
59
97
16
18
96
37
105
9
3
111
94
75
118
79
42
58
130
121
107
122
7
133
69
45
72
29
128
44
5
33
6
103
89
84
86
28
120
1
11
117
78
24
115
41
95
67
85
43
53
2
101
82
10
39
26
88
19
57
80
110
27
73
98
50
127

5.48
5.28
5.54
5.00
6.18
6.14
5.04
5.83
4.49
6.28
6.43
4.06
5.05
5.29
3.85
5.24
5.78
5.54
2.97
3.74
4.36
3.74
6.30
2.55
5.38
5.72
5.34
5.97
3.08
5.72
6.32
5.94
6.31
4.65
5.14
5.20
5.17
5.98
3.78
6.46
6.22
3.86
5.26
6.01
3.93
5.81
5.04
5.41
5.18
5.76
5.59
6.45
4.82
5.20
6.23
5.82
5.99
5.14
6.13
5.56
5.22
4.26
5.99
5.33
4.98
5.66
3.37

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

PILLARS
BASIC REQUIREMENTS
Country/Economy

Libya
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malawi
Malaysia
Mali
Malta
Mauritania
Mauritius
Mexico
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Timor-Leste
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe

1. Institutions

2. Infrastructure

3. Macroeconomic
stability

4. Health and
primary education

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

68
47
7
73
115
124
33
128
41
125
51
59
123
65
57
129
53
119
12
16
113
118
11
25
114
55
122
88
95
71
39
44
17
86
64
30
96
97
2
54
29
77
38
89
75
5
3
72
18
116
103
43
109
48
35
69
110
94
9
26
28
49
104
92
117
132

4.38
4.68
5.85
4.27
3.52
3.43
5.12
3.30
4.97
3.43
4.63
4.47
3.48
4.43
4.49
3.26
4.61
3.50
5.71
5.58
3.54
3.51
5.73
5.30
3.53
4.54
3.49
4.06
3.94
4.30
5.05
4.84
5.57
4.10
4.43
5.17
3.93
3.90
5.99
4.61
5.18
4.26
5.06
4.05
4.26
5.96
5.98
4.30
5.47
3.51
3.71
4.86
3.60
4.67
5.09
4.34
3.58
3.96
5.75
5.29
5.23
4.64
3.70
4.02
3.51
2.71

67
59
6
83
111
50
43
88
33
100
41
98
121
52
64
105
37
123
10
5
119
102
7
18
104
69
130
90
113
66
44
42
9
84
114
32
77
110
1
78
46
45
49
73
94
2
8
57
37
81
74
60
109
80
23
96
106
120
15
21
34
40
133
63
61
118

3.88
4.00
5.88
3.69
3.24
4.32
4.53
3.55
4.82
3.37
4.59
3.40
3.09
4.28
3.92
3.30
4.77
3.07
5.66
6.03
3.12
3.34
5.88
5.38
3.31
3.85
2.71
3.52
3.24
3.90
4.49
4.58
5.69
3.68
3.23
4.84
3.75
3.24
6.15
3.74
4.47
4.47
4.38
3.80
3.50
6.10
5.85
4.04
4.73
3.71
3.80
3.98
3.24
3.72
5.02
3.49
3.29
3.10
5.52
5.07
4.81
4.60
2.39
3.93
3.94
3.14

105
43
19
90
113
112
26
108
38
118
53
69
132
93
70
116
32
131
15
35
120
127
28
29
89
65
129
97
98
103
23
33
39
110
71
36
80
107
4
63
31
45
22
64
86
14
5
79
16
109
123
40
130
54
37
62
119
78
6
20
8
66
106
94
111
101

2.83
4.44
5.56
3.05
2.63
2.63
5.05
2.73
4.60
2.57
4.16
3.69
1.98
3.00
3.62
2.59
4.77
2.03
5.74
4.64
2.52
2.29
4.95
4.93
3.06
3.88
2.13
2.91
2.91
2.88
5.23
4.69
4.58
2.67
3.62
4.63
3.25
2.75
6.35
3.89
4.84
4.33
5.36
3.88
3.15
5.82
6.35
3.28
5.60
2.73
2.45
4.57
2.04
4.09
4.62
3.92
2.54
3.39
5.98
5.43
5.92
3.86
2.80
3.00
2.63
2.89

4
57
6
49
123
126
42
110
81
113
98
28
108
70
32
100
66
86
38
33
124
20
7
10
114
46
107
63
76
74
79
87
13
75
36
9
90
111
35
40
26
68
62
128
51
15
17
80
25
130
77
22
21
23
55
64
73
106
24
71
93
78
91
112
104
133

6.19
4.72
5.95
4.84
3.38
3.17
5.00
3.91
4.52
3.84
4.21
5.29
3.95
4.61
5.24
4.18
4.62
4.44
5.21
5.24
3.33
5.43
5.94
5.82
3.81
4.92
3.95
4.66
4.54
4.56
4.52
4.44
5.73
4.55
5.24
5.86
4.39
3.88
5.24
5.14
5.32
4.62
4.68
2.83
4.82
5.70
5.63
4.52
5.34
2.63
4.54
5.37
5.41
5.35
4.77
4.66
4.59
3.96
5.35
4.60
4.31
4.53
4.38
3.86
4.00
1.00

104
55
25
60
102
124
34
129
32
114
56
65
100
40
87
131
109
106
14
4
83
132
17
92
113
64
90
91
93
35
31
49
8
63
51
71
108
46
13
48
22
125
38
47
54
12
21
70
15
99
112
61
123
62
30
74
116
68
20
23
36
52
81
76
126
119

4.61
5.57
6.01
5.52
4.82
3.61
5.90
2.99
5.94
3.95
5.56
5.48
4.91
5.81
5.17
2.97
4.28
4.45
6.22
6.43
5.20
2.96
6.16
5.08
3.95
5.50
5.14
5.14
5.07
5.88
5.95
5.67
6.30
5.50
5.65
5.37
4.33
5.71
6.22
5.68
6.10
3.60
5.82
5.69
5.58
6.22
6.10
5.38
6.20
4.97
4.03
5.52
3.69
5.50
5.95
5.32
3.93
5.41
6.13
6.07
5.88
5.60
5.22
5.28
3.44
3.80

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Table 6: The Global Competitiveness Index: Basic requirements (cont’d.)

17

82 4.20 4.36 3.25 2.46 4.43 4.33 5.94 4.94 2.99 5.13 5.36 5.63 4.56 3.82 5.21 3.20 4.79 3.10 4.09 4.38 4.72 4.69 5.40 3.82 2.47 3.45 4.39 3.02 4.55 4.76 4.29 3.65 5.13 3.64 4.68 3.03 5.16 4.50 3.47 3.11 3.56 4.18 2.88 3.72 4.00 3.39 5.36 4.02 3.06 3.50 2.39 6.45 4.93 5.63 2.25 3.43 5.24 3.86 4.72 3.51 5.71 4.92 4. Goods market efficiency 7.29 4.44 5.14 4.44 5.64 5.77 3.83 5.29 5.74 4.60 5.40 4.47 4.88 5.28 3.68 3.63 5.44 4.43 4.37 4.74 4.27 4.27 5.85 (Cont’d.85 4.54 4.53 4.89 4.10 4.75 5.20 5.67 4.68 3.71 5.87 3.32 3.00 4.25 4.91 5.20 4.82 3.05 4.77 4.84 3.12 5.82 3.61 4.06 4.39 2.54 5.90 6.34 3.94 4.90 3.53 4.69 3.24 3.81 3.21 4.49 5.68 5.54 4.97 5.24 3.22 4.85 3.94 4.47 4.95 4.89 6.98 3.66 4.06 4.25 3.20 5.05 5.86 5.81 3. Labor market efficiency 8.87 4.93 4.03 3.06 3.26 4.73 4.51 4.56 3.70 4.31 90 102 55 96 14 17 72 48 129 26 8 115 93 86 94 58 62 60 127 131 122 119 9 133 45 61 71 44 112 56 28 24 2 89 103 88 95 21 125 1 15 100 84 22 108 43 101 78 106 31 35 4 66 69 20 36 49 77 23 42 59 85 16 82 87 34 105 3.63 5.78 3.21 4. Higher education and training 6.62 4.60 4.45 4.68 4.78 5.89 4.46 5. Technological readiness Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 93 117 84 99 9 19 71 44 97 60 18 121 128 100 87 42 76 62 122 133 103 119 4 131 33 32 64 58 109 67 41 24 6 88 113 80 83 27 120 12 16 101 89 14 94 57 81 107 95 5 45 30 35 50 22 26 46 73 11 66 69 75 20 63 111 51 116 3.47 4.89 3.22 2.98 4.90 3.27 1.62 2.58 4.1.57 3.24 3.09 4.10 3.03 4.45 3.63 3.78 4.23 3.06 4.92 4.49 3.18 4.59 4.43 3.69 4.85 4.93 2.32 1.34 3.34 4.22 4.56 3.71 3.41 3.59 4.19 2.58 4.10 4.) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .41 3.35 3.20 3.50 3.11 2.48 4.13 4.28 5.81 3.36 4.40 4.95 4.38 3.17 5.00 2.61 3.82 4.83 4.95 4.22 4.59 3.12 3.07 4.75 3.58 4.17 3.27 5.84 2.50 5.31 2.50 4.67 4.88 4.25 3.32 3.29 4.16 4.09 4.21 4.35 3.45 4.50 4.08 3.22 4.63 2.25 4.00 3.64 4.39 2.05 4.79 4.65 3.64 5.90 5.01 65 127 123 47 9 34 13 35 112 48 44 87 131 94 58 80 10 54 60 101 52 104 7 102 41 32 78 36 105 92 46 20 5 73 130 126 68 21 69 23 67 26 17 70 100 116 88 99 121 4 63 6 83 75 22 28 117 72 12 106 18 40 84 59 76 37 64 4.66 4.23 4.64 3.57 4.00 4.37 3.26 2. Rep.17 4. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.87 2.11 2.53 3.61 5.65 4.18 5.22 4.09 4.53 4.96 3.49 3.53 2.07 3.30 4.11 5. Financial market sophistication 9.79 5.81 4.66 3.67 5. Kuwait Kyrgyz Republic Latvia Lesotho 5.09 3.33 3.53 3.62 3.40 4.12 3.33 5.99 4.10 3.96 3.15 4.51 2.29 4.07 5.40 3.23 5.41 4.26 5.71 89 123 68 105 20 19 75 35 125 41 22 117 128 95 92 46 60 56 122 129 113 111 11 127 42 79 66 62 97 43 38 30 4 72 102 82 81 16 131 10 24 90 100 12 112 53 70 94 93 9 40 14 83 88 21 26 39 50 25 61 69 96 15 49 124 47 116 3.55 3.51 4.05 3.05 5.07 4.57 3.39 4.64 3.34 3.08 3.56 2.40 4.87 4.81 5.50 1.62 3.88 4.30 4.91 4.54 2.87 4.30 3.77 4.80 4.99 5.85 4.91 5.92 4.24 5.32 3.51 4.94 5.36 3.06 4.24 4.78 2.26 4.78 1.42 3.12 4.49 2.41 90 132 116 97 4 27 66 30 71 38 25 108 121 104 47 51 68 76 117 133 94 120 11 131 32 81 78 79 113 77 18 42 8 105 114 84 70 29 127 7 21 91 95 36 59 83 67 101 89 1 69 85 16 61 45 15 100 46 40 52 111 37 58 63 109 60 102 3.68 4.13 3.95 5.39 3.41 2.36 3.17 3.33 4.54 4.32 3.63 2.94 2.04 3.67 2.08 3.23 4.78 3.94 4.02 3.37 2.63 2.35 4.19 5.72 3.36 4.72 4.31 3.18 4.26 3.86 4.21 3.86 4.47 2.31 2.70 5.53 4.09 5.09 3.77 3.30 4.37 3.14 4.01 4.65 5.08 3.97 4.92 3.92 4.42 3.05 4.18 3.49 6.08 2.92 5.45 3.51 3.23 97 126 124 116 9 11 71 22 102 72 13 103 131 125 79 99 100 81 98 129 85 118 16 133 26 42 88 47 115 94 24 27 7 89 127 87 50 28 106 19 25 60 74 18 91 75 52 96 80 2 64 31 48 41 15 49 65 69 17 43 84 73 36 63 120 57 82 3.13 3.64 10.52 2.42 4.92 3.1: The Global Competitiveness Index 2009–2010 18 Table 7: The Global Competitiveness Index: Efficiency enhancers PILLARS EFFICIENCY ENHANCERS Country/Economy Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Chad Chile China Colombia Costa Rica Côte d’Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gambia.06 3.84 4.86 3.14 3.69 4.52 4.12 4.74 4.63 3.98 4.09 5.35 2.87 3.57 1.05 4.72 2.51 4.66 2.03 5.47 2.41 3.50 3.23 4.87 4.82 4.32 3.34 3.67 3.19 2.48 5.41 4.82 5.32 3.27 4.98 4.46 4.30 4.64 4.83 2.33 4. Market size Rank Score 106 51 23 109 19 33 78 97 48 126 25 122 87 90 98 10 115 58 119 132 92 89 14 116 44 2 31 77 95 65 99 40 49 68 60 26 80 94 76 53 8 131 101 5 86 34 71 129 84 27 45 120 4 16 52 50 9 100 3 82 55 74 12 61 112 83 127 2.23 3.01 3.37 4.39 4.27 5.08 3.11 4.17 4.08 3.57 2.86 3.68 3.38 4.76 2.20 3.56 3.69 5.95 3.07 3.73 5.97 3.21 4.04 3.86 3.19 3.00 4.20 3.

84 4.61 4.81 3.38 4.36 5.16 2.16 3.72 3.19 3.91 4.15 3.83 5.20 4.92 4.78 3.54 3.84 2.78 4.12 4.63 4.49 2.42 3.48 5.28 3.63 3.53 4.48 3.41 3.45 4.06 2.22 3.16 4.57 2.17 3.02 5.66 3.15 6.69 5.52 3.69 5.69 4.21 3.52 3.81 5.88 2.87 2.97 3.96 3.38 5.50 4.70 3.87 3.45 4.60 4.91 3.31 3.40 2.95 4.30 3.07 3.38 3.79 3.66 4.27 4.69 4.67 3.27 2.43 4.18 3.93 4.75 2.11 4.55 2.64 5.43 3.31 3.44 4.62 4.76 5.43 4.04 4.96 4.70 5.38 5.43 2.51 5.25 2.40 4.08 132 45 42 86 66 55 31 114 93 95 74 115 39 53 129 109 57 122 27 11 96 61 15 33 124 89 118 77 113 50 103 51 14 79 43 71 110 85 1 29 56 90 97 111 108 19 2 128 24 62 82 25 91 81 98 120 30 49 16 8 3 119 133 38 107 125 3.86 3.57 4.69 4.59 4.74 2.65 4.22 3.27 4.97 4.88 2.39 3.71 3.55 3.29 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 10.97 4.75 4.86 5.91 5.79 4.93 4.83 5.43 4.64 4.31 5.24 4.92 4.97 5.07 2.93 4.29 4.44 5.80 4.50 4.90 5.71 3.06 3.67 3.37 5.68 4.66 2.78 3.25 3.89 4.25 4.40 2.47 4.82 4.42 4.70 4.33 3.86 4.54 4.72 4.87 3.65 6.49 5.69 3.69 5.90 4.26 5.86 3.32 3.76 5.26 5.69 4.61 4.67 4.15 4.83 3.87 4.18 4.62 3.01 3.62 1.62 2.88 3.70 3.56 4.31 5.27 4.55 4.38 4.12 3.75 4.59 2.57 4.82 6.07 3.96 3.19 3.99 4.84 3.77 3.53 3.06 4.26 4.76 3.95 4.00 4.25 4.77 5.79 5.56 4.30 2.16 3.88 3.54 3.73 4.67 4.47 122 72 9 75 125 55 6 124 13 129 26 73 115 17 96 118 31 99 23 3 107 57 10 43 64 22 103 39 93 44 62 19 35 56 119 53 110 92 2 28 48 5 50 65 112 12 14 123 54 128 74 49 130 34 87 80 86 106 33 24 20 88 126 82 41 98 3.95 3.30 4.52 3.06 4.74 4.27 5.21 2.70 3.15 5.89 2.26 2.03 5.88 2.78 4.92 3.29 4.08 3.52 4.15 4.90 4.35 5.) 19 .49 5.60 3.66 3.01 3.79 4.82 4.81 3. FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Sweden Switzerland Syria Taiwan.11 4.01 2.93 2.08 3.33 3.86 3.74 3.15 3.06 2.22 5.79 2.14 4.93 3.16 5.49 4.87 5.57 3.97 3.91 5.58 4.18 3.71 2.49 3.66 3.99 4.53 2.07 4.05 4.40 5.23 4.94 4.76 2.38 4.54 2.10 4.07 3.73 3.69 4.40 3.61 3.96 3.24 4.72 2.98 3.52 2.91 4.55 4.85 4.61 4.24 3.41 2.76 4.34 4.49 3.19 3.61 4.99 5. Goods market efficiency 7.51 2.76 4.19 4.81 3.08 2.36 4. Higher education and training 6.08 4.66 4.24 4.69 4.16 3.57 5.18 5.34 2.57 4.77 3.44 3.28 2. Labor market efficiency 8. Market size Rank Score 73 69 85 103 108 118 28 114 121 125 110 11 123 124 56 104 113 96 18 59 107 42 47 75 30 81 93 46 35 20 43 62 70 41 7 22 105 67 39 57 72 24 13 63 128 32 36 64 17 117 79 21 133 102 66 15 91 29 54 6 1 88 37 38 111 130 3.33 4.48 4.76 3.43 4.14 4.PILLARS EFFICIENCY ENHANCERS Country/Economy Libya Lithuania Luxembourg Macedonia.97 4.57 4.57 2.20 4.90 2.72 4.01 4.79 4.57 2.16 119 59 3 76 93 86 30 113 40 111 37 90 107 58 68 121 77 117 6 8 110 62 23 33 83 54 105 66 95 53 51 34 21 61 108 29 55 112 1 32 38 35 46 45 123 4 5 101 14 122 104 44 128 92 39 56 114 109 10 20 12 78 132 67 70 130 3.06 3.84 3.19 3.55 4.29 4.70 5.20 3.41 4.08 4.37 5. Financial market sophistication 9.14 4.43 5.70 2.76 1.69 2.32 3.44 4.45 4.15 3.05 4.1: The Global Competitiveness Index 2009–2010 Table 7: The Global Competitiveness Index: Efficiency enhancers (cont’d.61 4.39 4.53 3.92 3.31 4.79 3.24 5.87 75 30 39 70 117 120 41 126 37 132 79 74 91 57 99 130 110 124 10 11 109 113 12 67 118 80 121 81 68 27 38 40 25 52 51 53 98 76 5 47 19 65 33 64 97 3 6 104 13 107 128 54 116 63 32 73 123 46 29 18 7 50 83 92 114 111 3.83 4.91 5.53 5.91 4.10 3.40 3.82 4.89 5.04 3.30 4.69 4.74 3.00 4.56 3.35 4.46 2.10 4.16 2.54 5.13 4. Technological readiness Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 110 47 23 85 118 105 25 127 48 129 72 55 106 65 91 124 90 125 10 15 114 77 13 53 92 70 115 59 78 31 43 36 28 49 52 38 96 86 2 34 37 39 29 74 126 7 3 112 17 123 104 40 132 79 56 54 102 68 21 8 1 82 108 61 98 130 3.08 4.67 4.89 4.04 4.49 5.11 3.61 4.06 3.88 4.01 1.80 5.09 4.47 4.67 4.41 2.91 4.08 5.58 4.76 4.83 4.31 3.81 3.24 2.48 4.39 3.99 4.11 3.78 3.17 5.01 4.21 6.46 3.97 4.17 5.35 3.30 3.82 3.49 4.55 4.68 3.32 4.41 3.83 2.51 3.27 3.79 3.85 2.78 4.12 4.05 3.57 2.85 4.29 3.84 4.66 4.18 2.61 3. China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Zambia Zimbabwe 5.93 3.14 5.45 3.24 3.12 3.76 4.79 98 36 5 52 114 126 37 110 27 106 57 71 107 45 76 99 86 132 2 23 119 101 7 64 104 59 103 77 84 48 31 34 28 58 74 44 87 78 6 33 32 65 29 85 115 1 3 108 18 121 120 63 133 67 55 54 118 80 17 8 13 51 91 73 109 130 2.05 4.65 4.67 4.65 3.49 4.42 1.19 3.54 3.48 3.24 5.78 4.46 4.32 3.63 4.51 4.80 3.22 5.37 5.22 3.77 4.62 3.96 5.78 4.75 3.95 3.30 3.45 2.10 3.94 4.56 4.49 2.75 5.74 5.

15 3.62 2.64 5.90 3.96 3.03 2.10 3.15 3.80 5.75 3.25 4.50 3.94 3. Business sophistication Rank Score Rank Score 121 122 76 112 21 11 56 60 114 49 13 104 133 127 92 38 81 89 105 119 107 106 12 126 43 29 62 37 98 72 32 26 7 82 123 71 87 42 115 6 15 69 117 5 108 66 63 110 96 23 61 19 28 40 20 17 34 83 2 51 78 50 16 64 128 86 101 2.48 .76 4.77 3.85 3.71 4.70 3.63 4.84 2.94 5.51 3.42 3.70 4.21 3.94 3.51 3.21 3.05 4.70 3.30 4.40 5.34 3.21 4.35 4.32 3.63 3. Business sophistication Rank Score Rank Score 111 53 22 93 99 97 24 102 48 125 65 67 120 68 88 113 91 129 9 27 116 70 18 52 84 54 131 85 74 46 41 31 36 75 73 33 59 94 10 57 30 39 35 44 118 4 3 100 8 109 95 47 132 79 45 58 103 80 25 14 1 77 130 55 90 124 3.73 3.38 2.41 4.87 4.95 2.96 2.15 3.76 2.21 3.33 3.96 4.52 3.49 4.83 3.57 5.23 3.06 3.10 3.29 2.89 4.61 4.20 3.34 4.48 3.33 5.51 3.82 5.01 4.23 3.64 2.92 5.04 4.52 4.98 4.18 4.03 4.08 3.60 5.85 4.31 3.90 2.06 4.28 3.94 5.86 3.41 3.47 4.90 4.92 3.21 5.76 3.44 3.84 3.14 2.11 4.63 3.11 2.39 3.00 5.25 3.90 4.00 2.21 4.54 4.07 4.14 3.03 3.73 3.96 2.91 4.99 2.84 3.53 5.73 2.25 3.74 4.53 3.44 3.62 3.56 3.70 3.82 3.37 2.88 3.12 2.59 3.06 3.04 3.43 3.35 3.79 3.67 4.94 2.53 4.95 2.72 2.29 2.23 3.86 3.31 5.82 3.15 3. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.36 3.84 2.64 3.49 4.41 3.04 3.60 3.71 3.83 3.35 4.66 3.28 4.79 3. Innovation Rank Score 106 58 21 92 84 94 24 81 53 125 85 78 101 56 96 105 103 130 13 23 117 73 17 55 79 66 133 109 99 52 33 31 36 70 51 32 54 80 8 68 29 41 40 46 118 5 2 110 6 97 93 57 127 87 38 69 98 62 27 15 1 67 123 44 90 124 2.54 3.33 3.80 4.97 4.47 4.80 4.98 4.21 3.98 3.83 3.87 4.56 2.40 5.) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 12.26 2.53 3.98 5. China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Zambia Zimbabwe PILLARS 11.71 5.46 2.59 4.42 3.64 3.90 3.40 2.02 4.30 4.1: The Global Competitiveness Index 2009–2010 20 Table 8: The Global Competitiveness Index: Innovation and sophistication factors INNOVATION AND SOPHISTICATION FACTORS Country/Economy Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Chad Chile China Colombia Costa Rica Côte d’Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gambia.28 5.06 3.52 2.14 3.99 2.56 3.89 4.84 3.28 3.83 2.41 2.64 2.11 2.39 5.12 3.70 3.80 3.80 3.29 3.21 4.27 3.88 3.21 5.45 3.29 3.92 2.12 3.29 4.47 3.00 2.21 4.33 2.15 3.57 4.55 3.06 4.95 3.61 2.96 5.08 3.67 4.19 3.12 4.39 5.55 3.77 3.17 3.22 3.68 3.55 2.12 2.44 3.14 3.67 4.16 109 128 73 112 26 7 74 61 100 58 11 114 131 117 107 32 77 89 123 119 101 106 17 129 39 38 60 41 92 84 31 25 8 71 105 72 63 48 118 9 10 67 113 2 98 66 47 94 87 15 76 23 27 40 18 30 20 79 1 49 88 59 21 50 127 82 104 3.54 3.22 3.35 4.69 3.40 2.80 4.62 2.72 5.55 3.68 2.69 5.43 2.97 3.47 4.67 4.94 3.23 2.77 5.52 4.88 2.88 Country/Economy Libya Lithuania Luxembourg Macedonia.70 3.70 3.43 2.68 3.68 4.00 3.23 3. Innovation Rank Score 126 114 86 108 20 19 42 60 122 47 14 89 132 131 71 43 75 91 76 116 107 102 12 120 49 26 63 34 104 61 35 25 10 100 129 74 113 37 112 3 18 72 119 7 115 65 77 121 111 28 45 16 30 39 22 9 50 82 4 59 64 48 11 83 128 88 95 2.75 3.53 3.45 5.75 4.79 4.76 4.95 2.28 4.71 3.51 3.70 4.83 3.10 3.12 2.42 5.33 3.14 2.56 5.17 4.89 3.06 2.71 4.45 2.23 4.13 3.95 3.55 3.43 3.29 3.81 4.57 3.23 4.00 3.22 4.30 3.28 3.20 4.63 4.31 2.24 4.86 111 56 22 96 103 99 24 116 46 125 55 62 130 80 78 124 86 126 6 34 110 69 16 57 81 45 120 68 65 44 53 29 37 83 95 35 64 102 14 51 33 36 28 42 115 4 3 90 13 122 97 43 133 75 54 52 108 91 19 12 5 85 132 70 93 121 3.93 3.04 2.65 3.52 4.18 4.30 2.37 2.80 2.91 2.64 4.80 3. Rep.00 3.89 2.27 3. Kuwait Kyrgyz Republic Latvia Lesotho PILLARS 11.32 3.71 2.35 3. FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Sweden Switzerland Syria Taiwan.1.26 2.06 2.87 2.06 4.46 3.65 3.25 (Cont’d.83 2.24 5.41 4.54 4.32 3.24 4.59 3.93 3.68 3.69 3.76 3.95 2.64 3.72 3.41 4.09 3.37 3.57 4.98 5.22 2.35 4.43 INNOVATION AND SOPHISTICATION FACTORS 12.36 3.42 4.29 5.79 3.20 5.72 4.15 3.57 2.79 5.52 3.08 3.17 4.53 4.12 2.31 2.81 3.03 4.69 3.43 4.81 3.10 2.42 3.07 3.58 3.63 2.98 2.28 2.45 3.98 3.88 3.37 3.08 3.78 2.96 5.45 4.20 3.89 4.01 5.61 5.05 3.66 5.97 3.27 4.64 3.80 3.44 2.47 3.17 5.00 3.43 4.53 4.

see Box 2. whereas the United States has seen a weakening across a number of areas. Repeated fiscal deficits have led to burgeoning levels of public indebtedness. The countries that constitute the top 10 remain the same as last year.The country is characterized by high spending on R&D. down from 66th last year. Switzerland’s economy continues to be characterized by an excellent capacity for innovation and a very sophisticated business culture. Although the country is very competitive overall. the competitiveness performance of top-performing countries on average has declined. Singapore also has world-class infrastructure (ranked 4th).This strong innovative capacity is captured by the high rate of patenting (148. this has been muted compared with many other countries. Although gaps are currently being filled through immigration.This is explained by the fact that Switzerland’s performance has remained relatively stable. Switzerland’s public institutions are rated among the most effective and transparent in the world (7th). as discussed below. Combined with the scale opportunities afforded by the sheer size of its domestic economy—the largest in the world by far— these qualities continue to make the United States very competitive.The country’s goods markets (12th) are also characterized by low levels of distortion within the context of a very competitive environment. given that the financial crisis originated in large part in the United States. The United States is home to highly sophisticated and innovative companies operating in very efficient factor markets. reinforced by strong intellectual property protection. as well as a labor market that is among the most efficient in the world (2nd.27 per million inhabitants) in the country. with particular concerns on the part of the business community about the government’s ability to maintain arms-length relationships with the private sector (48th). just behind Singapore). and the strong collaboration between the academic and business sectors ensures that much of this research is translated into marketable products and processes. Competitiveness is also buttressed by excellent infrastructure (5th) and a well-functioning goods market (5th). remaining the highest-ranked country from Asia. However. and in the perception that the government spends its resources wastefully (68th). For more analysis of the competitiveness of the United States. it is hardly surprising that there has been a weakening of the assessment of its financial market sophistication. and air transport facilities. More generally. After several years at the top of the rankings.The country is also endowed with an excellent university system that collaborates strongly with the business sector in R&D. 21 .a number of escalating weaknesses have taken their toll on the US ranking this year. Singapore moves up two ranks to 3rd place. a strong rule of law.There is also increasing concern related to the functioning of private institutions. ensuring the proper allocation of these factors to their best use. ranked 3rd for its business sophistication and 2nd for its innovation capacity.1: The Global Competitiveness Index 2009–2010 the context of the present recession. at a time when confidence in governments in many countries has diminished. and a highly accountable public sector. leading the world in the quality of its roads. And Switzerland’s macroeconomic environment. On the other hand. which are presently being exacerbated by significant stimulus spending. ports. Switzerland overtakes the United States this year as the world’s most competitive economy. Switzerland’s scientific research institutions are among the world’s best. with a measurable weakening of the assessment of auditing and reporting standards (down from 20th last year to 39th this year). efforts should be made to boost higher education attainment to ensure sufficient national talent. In addition. Financial markets have also weakened somewhat. the country’s competitiveness is propped up by a strong focus on The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. there are some weaknesses in particular areas that have deepened since our last assessment. However. the United States falls one place and is ranked 2nd this year. with some changes in rank among them. characterized by the ease and affordability of hiring workers and significant wage flexibility.This implies that in many cases countries that improve in the rankings do so by maintaining a performance across the various indicators similar to that of past years. Some aspects of the institutional environment could be strengthened. ensuring a level playing field and enhancing business confidence. Labor markets are ranked 3rd.The country’s institutions continue to be ranked as the best in the world. where it ranks 93rd.The country continues to be endowed with many structural features that make its economy extremely productive and that place it on a strong footing to ride out business cycle shifts and economic shocks. Singapore places 1st for the efficiency of its goods and labor markets and 2nd for its financial market sophistication. perhaps not unexpected in the context of recent turmoil and scandals within the financial sector in particular. reflecting in particular difficulties in the national banking sector.The United States has built up large macroeconomic imbalances over recent years. these include an independent judiciary. The country’s greatest overall weakness continues to be related to its macroeconomic stability. placing the country 46th on this indicator. they are assessed even more strongly than in past years. dropping from 9th last year to 20th overall this year in that pillar. the university enrollment rate of 47 percent continues to lag behind many other high-innovation countries. although weakening somewhat since last year. continues to be assessed as stable compared in particular with the United States and many European neighbors (ranked 17th). for which Switzerland ranks 7th worldwide on a per capita basis.

the ninth year in a row that the federal budget will have shown a deficit. In order to strengthen its competitiveness further. and the assessment of bank solvency has dropped from a rank of 40 last year all the way down to 106th this year (on a par with countries such as Albania and Mali). For example. with high rates of job creation and low rates of unemployment. ranked behind only Singapore on this pillar. and will support recovery from the current recession. Its labor markets are very flexible and efficient. In the meantime. high national savings. as confirmed by its 1st place in the variable assessing this dimension. over the past few years—and particularly this year—there is a much weaker assessment of the country’s financial markets. such as strong intellectual property protection. recent stimulus spending. Macroeconomic imbalances also continue to afflict the United States. including the soundness of banks. pensions. are assessed as the most efficient in the world. have somewhat eroded the country’s overall competitiveness potential over the past years. The efficiency of its goods and labor markets. while meant to head off an even more protracted recession. Further.They continue to lead the rank- high attainment rates of tertiary education. Sweden. and the impressive capacity for technological innovation of its companies. Related to this issue. while the flexibility of US labor markets has allowed for rapidly rising unemployment since the onslaught of the economic crisis. the US economy has increasingly suffered from weaknesses in other areas. all running healthy budget surpluses through 2008. as in past years. outflanked by Switzerland this year. The Nordic members of the European Union continue to hold privileged positions in the rankings. With the many long-term claims on the budget— such as defense. much in line with the evolving situation in the country and recent bank failures and bailouts. Singapore could encourage even stronger adoption of the latest technologies—especially broadband Internet—as well as the innovative capacity of its companies. and other social payments (including healthcare)—the prospects for sustained fiscal adjustment do not seem bright. against a background of wage flexibility and considerable ease for hiring and firing at the firm level. the impact of this deficit spending on public debt is alarming. which some observers consider to be the root cause of the financial crisis. and this has pushed its GCI score downward this year. with low levels of public indebtedness. the overall high levels of sophistication of the business community (ranked 8th) ensure that much of this innovation is translated into productive business activity. and Sweden also continue to occupy the top three positions in the higher educa- The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . The IMF also projects deficits at least through 2010. and Denmark hold the 4th through the 6th places. as the loss of confidence in financial markets has now been added to the list of challenges to be addressed.1. Its goods markets in particular. These weaknesses. It is clear that in order to ensure rising prosperity for future generations. Finland. According to the latest estimates published by the International Monetary Fund (IMF). Denmark. there is also a strong sense that there has not been enough accountability among the country’s private institutions. Indeed. is increasing the debt burden that will be borne by future generations. Businesses and universities collaborate heavily in research. the fiscal deficit in 2009 is projected to exceed 13 percent of GDP. supplied in a timely manner. Access to finance through various channels has become measurably more difficult. and that accounting and auditing standards have not been up to scratch. However. and narrow interest rate spreads. spawning centers of innovation. This culture of innovation is buttressed by a number of other critical factors. despite the government’s pledges to rein in spending after the crisis. the United States has fallen to 2nd place in the Global Competitiveness Index (GCI). the United States must get its macro house in order rapidly once the crisis subsides. they are all ranked among the top 15 countries with regard to macroeconomic stability. the sophistication of its business culture. These factors remain a driving force behind US productivity.The three countries have among the bestfunctioning and most transparent institutions in the world. have been further emphasized by the present fall in the US ranking. these same flexible labor markets are expected to encourage firms to hire more rapidly once the crisis subsides. While strengths in the technological and market efficiency areas explain the country’s overall high rank. providing highly skilled individuals for the workforce.1: The Global Competitiveness Index 2009–2010 22 Box 2: Is the United States losing its competitive edge? After several years at the top of the rankings. ensuring a large selection of quality goods at low prices. as well as continuing burgeoning macroeconomic imbalances. Most notably. and excellent on-thejob training that fosters the ability of workers and businesses to adapt rapidly to a changing environment. ings in a number of individual areas. The level of innovation in the United States is second to none (1st in the innovation pillar). characterized by low levels of distortion in an environment of open competition across virtually all markets. supported by high levels of collaboration with universities in research. with debt rising sharply from 63 percent of GDP in 2000 to a projected 87 percent of GDP in 2009 and expected to continue to rise in coming years. very education. The United States has highly efficient goods and labor markets. a number of weaknesses particularly related to public and private institutions. It is therefore not surprising that the United States ranks 1st worldwide in patent registrations. Indeed. ensuring an optimal allocation of these resources. continue to constitute competitive strengths. Finland. The country is endowed with top-notch scientific institutions (ranked 2nd) and companies that spend heavily on R&D (ranked 5th).

After having fallen three positions in the last edition. highly efficient markets. the United Kingdom loses another place to settle at 13th this year. although the ranking has dropped in this area from 19th to 36th. with particularly good marks for its transport and telephony infrastructure. have now become concerns for many other countries. Indeed. which have dropped from 11th to 23rd overall. Germany’s labor market remains very rigid (124th for the labor market flexibility subpillar). Notably.The Netherlands is also characterized by a comparatively stable macroeconomic environment. Austria (17th). as in many countries. the result of a strong focus on education over recent decades. Norway (14th). in terms of innovation output this pays off with a rate of patenting per capita (263. which are ranked 6th overall. Europe Since last year. the Netherlands (10th). Its goods market is assessed as being efficient (18th).132nd rank. Germany remains stable at 7th place. however. and firing and therefore hiring workers is deemed expensive. Further. the United Kingdom (13th). A marked difference among these three Nordic countries relates to labor market flexibility. On the other hand.The country benefits from the strong availability of scientists and engineers and high company spending on R&D (2nd on both indicators). Finland (6th). linked to macroeconomic instability and questions about the soundness of its banks. having joined the top 10 last year. respectively). Japan’s rise in the rankings can in large part be traced to the fact that its main areas of weakness. particularly labor and financial markets (ranked 7th and 11th. as follows: Switzerland (1st). Denmark continues to distinguish itself as having one of the most flexible and efficient labor markets internationally (ranked 5th).The drop in the rankings can be traced mainly to a weaker assessment of its financial markets. Six European countries are among the top 10. Canada has improved in this area since last year.This has paved the way for the country’s workforce to adopt the latest technologies for productivity enhancements (ranked 11th). and Sweden close behind at 12th. corresponding to a 23 .The financial market also continues to receive relatively good marks. with Finland and Denmark ranked 7th and 8th.This has provided the workforce with the skills needed to adapt rapidly to a changing environment and has laid the ground for their high levels of technological adoption and innovation. rising from 43rd to 31st. and well-functioning and transparent institutions (17th). amid the economic and financial crisis. In Finland and Sweden. Continuing to reduce the debt level will be important for ensuring the Canadian government’s ability to meet its future liabilities and grow sustainably into the future. rounding out the top 10. France (16th).The country’s companies are highly sophisticated (ranked 6th on the business sophistication pillar) and are among the most aggressive internationally in absorbing new technologies (ranked 2nd for their technological readiness.These attributes allow Germany to benefit greatly from its significant market size (5th). improving on a relative basis compared with last year. just behind Sweden). Denmark (5th). Canada benefits from excellent transport and telephony infrastructure (7th for the infrastructure pillar). Sweden (4th).29 percent of GDP in 2008.35 per million inhabitants) that is 2nd worldwide. all three countries’ financial markets continue to receive high scores. several European countries have seen a weakening of their performance. Japan moves up one place to 8th overall. in these two pillars.The country benefits from clear strengths The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. Germany has very sophisticated businesses. or second to last on this indicator). however—as in a number of other European countries—companies have less flexibility in setting wages. the country has been successful in nurturing its human resources: it is ranked 7th for health and primary education and 9th for higher education and training. In addition. Europe continues to feature prominently among the most competitive regions in the world. which is crucial for countries at their advanced stage of economic development. with rising concerns about the soundness of banks and more difficult access to capital for business development. ranked 2nd. Canada moves up one more place this year to 9th. for example. while other countries in the top 10 have weakened. especially goods markets. The country’s overall competitive performance. which have led to the buildup of one of the highest public debt levels in the world (196.The country is ranked 1st for the quality of its infrastructure. with high budget deficits over several years (ranked 115th in 2008). continues to be dragged down by its macroeconomic weaknesses. and 12 are among the top 20. a position it has held for some time. linked. although cooperation in labor-employer relations is good in all three countries. Germany (7th). respectively. ranked 1st and 4th. Belgium (18th). mainly by maintaining its performance compared with last year. The Netherlands drops two places to 10th place. where a lack of flexibility in wage determination and the high cost of firing provide a hindrance to job creation. However. Business activity is buttressed by an excellent educational system and efficient factor markets. at a time when many industrialized and developing countries alike are struggling with macroeconomic instability. as well as a capacity for innovation that is second to none. Japan continues to enjoy a major competitive edge in the areas of business sophistication and innovation. with a high level of competition among companies (21st). respectively. to concerns about the solvency of the banking sector and more difficult access to credit.1: The Global Competitiveness Index 2009–2010 tion and training pillar. just behind Japan. and Luxembourg (21st).

Spain’s competitiveness performance continues to be boosted by the large market (13th) available to its national companies.21 percent of GDP in 2008. and consequential public indebtedness. characteristics that are important for spurring productivity enhancements. energy infrastructure. Italy also benefits from its large market size—the 9th largest in the world—which allows for significant scale economies. And the greatest area of concern remains the highly inflexible labor market (122nd).Toward that end. long mooted.The health of the workforce and the quality and quantity of education provision are other clear strengths (ranked 11th for health and primary education and 15th for higher education and training). It is clear that structural reforms in this area. producing goods high on the value chain using the latest production processes (14th). On a more negative note. right before the construction companies went bankrupt as a result of the explosion of the housing bubble. down 13 places since last year). Italy is ranked 20th for its business sophistication. it is hoped. with a stable performance compared with last year and demonstrating a number of competitive strengths. given the near economic collapse suffered by the country in the autumn of 2008.The country’s infrastructure is among the best in the world (ranked 3rd). In addition. a number of weaknesses are hindering the country from unleashing its full competitive potential. first-class infrastructure (22nd). Finally. particularly the sophistication of its businesses environment. In addition. still raises alarm bells for the future: the government budget deficit and the related public-sector debt ratio remain large. also thanks to strong business clusters (3rd). are overdue. It is especially interesting to note that the Spanish financial sector pillar has fallen 14 positions to rank 50th. with outstanding transport links.The country continues to do well in more complex areas measured by the GCI. France is ranked 16th in this year’s GCI.The country continues to have sophisticated and innovative businesses. dropping from 30th to 62nd place. and well-functioning institutions (13th) complete the picture. a matter of particular concern given the recently rising unemployment in the country—at 19 percent. efficient infrastructure (11th). strong technological adoption (29th in the technological readiness pillar). In this context it is not surprising that a significant and growing weakness remains the United Kingdom’s macroeconomic instability (71st. On the other hand. and the national savings rate. France’s labor market flexibility continues to be ranked very low (115th) because of the rigidity of wage determination and the strict rules on firing and hiring. mainly because of a sharp deterioration in the macroeconomic environment (from 56th to 119th) and a much poorer assessment of the country’s financial market sophistication (from 20th to 85th).This is interesting because Spain’s financial sector was praised by world leaders during the 2008 G-20 summit.The United Kingdom is also harnessing the latest technologies for productivity improvements: it is ranked 8th on the technological readiness pillar. However. Not surprisingly. its institutional environment (49th) could be strengthened to further buttress its economic potential. while growing.The public debt spiraled from 24.25 Iceland drops six places to 26th position. Italy moves up by one place this year to 48th place. Nevertheless. Italy’s overall competitiveness performance continues to be held back by some critical structural weaknesses in the economy. Indeed. it is the highest in the euro zone. Iceland can count on a top-notch educational system at all levels (2nd and 4th in the health and primary education and higher education and training pillars. the sound competitiveness fundamentals displayed by the country in key areas will. still remains somewhat low by international standards. ease the recovery and allow the Icelandic economy to bounce back more rapidly. Macroeconomic stability. respectively) coupled with a rather sophisticated business sector (23rd) displaying high levels of technological readiness (14th) and innovation (16th). causing a sizeable hole in the balance sheets of its main financial institutions. An extremely flexible labor market (6th). and communications.The drop in rank is largely attributable to a weakening of the assessment of the country’s financial market. providing the economy with a healthy and educated workforce.1. which has slipped from 5th to 24th place since last year. which discourages job creation. with low national savings. an exploding public-sector deficit (related in large part to recent efforts to bail out the financial sector). there has been a measurable weakening of the country’s macroeconomic stability since last year. standing in contrast to the rigidity of many other European Union (EU) countries. based on rising concerns in the business sector about the soundness of banks (126th) on the back of several banking-sector bankruptcies and bailouts. and good-quality higher education and training (33rd). the sophistication of its business culture (10th in the business sophistication pillar) and its leadership in the area of innovation (18th in the innovation pillar) are important attributes that have helped to boost the country’s growth potential. remaining nevertheless the lowest-ranked G-7 member country. while improved from last year (up to 58th from 65th).1: The Global Competitiveness Index 2009–2010 24 such as the efficiency of its labor market (8th). as well as the poor labor-employer relations in the country. with the government now running budget deficits and contributing to the already large debt burden.26 percent in 2007 to 93. Spain has dropped four ranks this year to reach 33rd place. The labor market remains among the most rigid in the The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . the bankruptcy of the three main banks—following their inability to re-finance short- term debt and a run on deposits—and the consequent takeover by the government of their domestic operations took a significant toll on the public finances.

along with prudent regulation of financial markets and the large size of the domestic market. the country continues to be characterized by efficient institutions. By early 2008. depending on their initial conditions and government policies. In 2009. it is not surprising that Eastern European countries were heavily affected when liquidity dried up in the Fall of 2008.5 Slovak Republic –2. gave rise to high inflows of lending as well as direct and portfolio investment from European countries.1 Slovenia –2.0 Source: IMF 2009a.1 Rapid integration with the global economy sustained growth in Eastern Europe over recent years but has also made the region more vulnerable to contagion during the economic crisis that is now having dramatic consequences in some countries. They were less leveraged. see Box 3. creating a large hindrance to job creation.6 Table 1: Growth projections for Eastern European countries Country Projected growth for 2009 Lithuania –10.0 Estonia –10. The largest improvement among the new EU members is registered by Poland. Azerbaijan moves up an impressive 18 places to rank 51st this year. and the steep drop in global demand— especially in the European Union. it became apparent that the region had overheated.This. Massive capital inflows were necessary to finance balance-of-payment deficits. were less dependent on exports. with Italy ranked 97th overall for its institutional environment. Other institutional weaknesses include high levels of corruption and organized crime and a perceived lack of independence within the judicial system.7 Czech Republic –3. Slovenia benefits from world-class health and educational systems. the years up to 2007 have seen a streamlining of fiscal and monetary policies. with measurable improvements across 25 . having improved by five places. and stabilized their economies and opened their markets—including their financial sectors—to trade and investment. consistent improvements across all dimensions of the institutional environment (up 10 places. such as the Baltic States. Yet countries were affected to different degrees. Another problematic area is its weak public finances and extremely high levels of public indebtedness (it is ranked 128th on this indicator—even lower than last year). privatized. Among the Baltic economies. Nevertheless. and strong uptake of new technologies.3 along with EU membership. Given this high dependence on outside finance. Slovenia (ranked 37th) follows closely behind. The second wave of contagion.3 Poland –0.9 percent on average—more than Asia or Latin America. and has seen measurable improvements in the quality of its public institutions.26 For more analysis of the 12 recent EU accession countries. Poland benefits from its strong educational system and large market size. and impressive innovative capacity.2 Over the past two decades. were members of the euro zone. up seven places to 46th rank this year.) 1. Although the country continues to face difficulties with respect to macroeconomic stability (43rd) and the quality of infrastructure (48th).0 Latvia –12. advancing its overall competitiveness outlook. well-functioning markets. and the Czech Republic will suffer from much milder recessions (see Table 1). accelerated credit growth and imports. While these are expected to register negative double-digit growth rates in 2009. has helped Poland to weather the effects of the current global downturn and become one of the most economically stable countries in the region. the country’s macroeconomic stability has improved (up from 33rd to 26th rank this year). or experienced a combination of these factors. Poland.Box 3: Eastern Europe: The road to recovery After years of buoyant growth. improved efficiency of markets (27th). falling unemployment. The relative stability that was associated with fixed exchange rates.7 Romania –4. in turn. with Italy ranked 117th out of 133 countries for its labor market efficiency. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum (Cont’d. the region is expected to contract by 4. with greater confidence in the efficiency and honesty of the country’s public servants.5 Open economies that were highly exposed to foreign currency borrowing and that ran large current account deficits. countries have deregulated. and rapidly rising living standards following their accession to the European Union (EU) in 2004. Among the 12 countries that have joined the European Union since 2004. were hardest hit. the countries of Eastern Europe have been hit hard by the global economic downturn. Similarly. Estonia at 35th loses some ground for the second year in a row. respectively. the Czech Republic takes the lead at 31st position. In addition. which increase business costs and undermine investor confidence. Latvia and Lithuania are down 14 and 9 places to 68th and 53rd.7 Bulgaria –2. from 72nd to 62nd). EU membership and buoyant growth over past years have provided an incentive and the means for conducting reforms. benefited from stimulus packages of EU countries.4 These. the Slovak Republic. which remains the main export destination for these countries—further drove them into recession. These countries are weathering the crisis better for various reasons. largely because of a deteriorating macroeconomic environment following the economic crisis.0 Hungary –3. Although the macroeconomic stability pillar has registered a significant drop in rankings this year (from 50th to 74th) because of the financial crisis. good infrastructure. and advances in technological readiness (30th) have contributed to this rise in the rankings.1: The Global Competitiveness Index 2009–2010 world.

) The steep downturn necessitated immediate action to stabilize the economies. access to loans (3. corruption is rampant (3. Stronger private and public institutions would ultimately reduce vulnerability related to greater integration with the global economy. Over the past decade. Latvia. 2008.42 vs.68 vs. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Most of all. A similar gap can be observed with respect to the functioning of private institutions (4. ranked 31st. Yet the present situation also provides an opportunity to strengthen economic fundamentals and overall competitiveness in order to put growth on a sustainable footing and prevent future crises. and also. There is also scope for strengthening financial supervision in some countries. to Poland. Much progress has been achieved since the early days of transition. While this relative flexibility and stability will provide advantages on the way to recovery. In many Eastern European countries. 6 Measures implemented by some EU countries to support automotive industries had significant spillover effects on some countries in the region such as Poland. many countries are transitioning toward the most advanced stage of development. foreign direct investment from Western European banks (including the associated transfer of know-how). Lithuania.46 for the established EU countries. to a lesser degree. would significantly contribute to raising the competitive performance of many of these countries.8 as well as fairly solid financial policy frameworks.39 in the EU15). tax rates tend to be lower and government regulation is less pervasive than in the EU15.12). 2 For example. The European Union and the European Bank for Reconstruction and Development (EBRD). The IMF has bailed out Hungary. and the Czech Republic. so that business sophistication and innovative capacity.9 Among other factors. labor markets are more flexible and efficient than they are in the EU15. if adequately addressed.54 vs. Yet the risks remain high and a significant gap vis-à-vis the “old Europe” remains visible with respect to financial markets sophistication (4. 3 Estonia. 4. but will further solidify the region’s competitive position going into the future. Because of this relative strength. In this context. 4. on a scale of 1 to 7). for example through stricter capital requirements for weaker banks and putting in place forward-looking provisioning measures for loan losses. But to do this. lag behind by an even wider margin.7 This was attributable to. the ease of access to finance through the local equity market (3. other relatively advanced countries from the region. despite significant pressures. which is a new preventive facility.31 for the EU15). this has led to inflation in many countries. in particular with respect to regulations related to hiring and firing. the soundness of the banking sector is approximately at the level of Western Europe. Slovenia. the sophistication of the financial sector as well as the stability of the banking systems in Eastern Europe converged toward EU15 levels. the relationship between pay and productivity. but even regional best performer in this area Estonia. with only air transport infrastructure performing somewhat better.04 compared with 5.44 vs. the new EU members achieve a score of 4.81 for the EU15). the GCI points to other areas that will need to be addressed on a priority basis in the region. 8 Many Western European Banks acquired the newly privatized banks in Eastern European countries. 9 See C˘ihák and Mitra 2009 for a discussion of financial sector reform in the region.62). 4 Combined with fixed exchange rates. reducing budget deficits and inflation rates. On all these counts. advances will not only facilitate recovery over the next few years. 5. however. On average. Much progress in upgrading competitiveness has been achieved in the course of the transition to market economies and EU accession. 4.1. countries must seize this opportunity to put their economies on a more sustainable footing despite major short-term challenges.21 for the EU15. In most countries. Also.50 vs. According to the GCI results. and Bulgaria have fixed exchange rates. Accession to the European Monetary Union or the prospect thereof helped discipline fiscal and monetary policy.42 vs. and the participation of women in the workforce. 5. The present crisis has also highlighted weaknesses in the countries’ financial sectors. as well as a few Western European governments. which remain far below EU15 levels. the flexibility of wage determination. Latvia has experienced social unrest as a result of the crisis. Similarly. and granted a flexible credit line. does not reach the average level of the EU15 with respect to the quality of public institutions. this is the result of the relatively more critical assessment of this indicator in the EU15 in 2009. such as the Czech Republic (66th) or Slovenia (43rd). Latvia. will become increasingly more important in order to sustain the productivity gains achieved over the past years. among other factors. the countries’ institutional environments will need to be strengthened. 3. 5. and public trust in politicians is low (2. 5 See IMF 2009b for more details.13 for the EU15). Notes 1 The Economist 2009a and IMF 2009a.1: The Global Competitiveness Index 2009–2010 26 Box 3: Eastern Europe: The road to recovery (cont’d.74 vs. the GCI results provide interesting insight into the region’s strengths and weaknesses and the necessary steps to be taken. and Romania. 7 See Drzeniek Hanouz et al. have also jumped in to support the banking sector. physical infrastructure remains a major weakness that. no systemic failures of banking systems have been observed to date. governments are considered inefficient (3.

addressing the inefficiencies in the labor market (120th). characterized by high and improving flexibility (for example. improving the human resources base through better primary education and better healthcare (74th).) 1. from 89th to 71st). Russia collapsed by 12 places. the only BRIC economy to see a decline in performance. as shown in Table 1. Although GDP growth rates in emerging markets have not fallen as much as they have in advanced economies. All three countries improved their ranks. and other types of financing. having decoupled from the business cycle of industrialized economies. and reinforcing the efficiency and transparency of public institutions.The drop in overall rank is mainly attributable to a weaker assessment of the functioning of factor markets.1 the notion that the developing world would be only marginally affected by the crisis. The expert survey of Box 1 is also in line with this decline.The country is characterized by strong and improving macroeconomic stability. the country improved from 70th to 4th position in the rigidity of employment index). a lack of property rights (119th). Private institutions also get poor marks. On the other hand.There have also been measurable improvements in the efficiency of the country’s markets. some more basic issues must still be tackled.Within goods markets (up 18 places. with experts on average expecting Russia’s competitiveness to be negatively effected in the longer-term by the crisis. although high inflation does raise some concerns. As discussed in the chapter. and India have continued to improve on their competitiveness fundamentals. remittances. Compared with other countries.Turkey has also seen an improvement in its macroeconomic stability. Russia’s main strengths are its large market size and reasonable macroeconomic stability (although this has been partly the result of windfall oil revenues and might not prove sustainable in the longer term). the country must tackle a number of structural weaknesses. losing significant ground in general competitiveness. and the time required has been reduced from 30 to 16 days. has not held true. What is causing this divergence in performance? Table 1: Comparison of GCI 2009 and 2008 for BRIC countries Country GCI 2008–2009 GCI 2009–2010 Change in rank Brazil 64 56 8 China 30 29 1 India 50 49 1 Russian Federation 51 63 –12 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum (Cont’d. Turkey moves up two places to 61st this year.Turkey continues to benefit from its large market. Brazil. 27 . little judicial independence in meting out justice (116th). and more general concerns about government favoritism in its dealings with the private sector. with corporate ethics in the country placing Russia 110th overall on this indicator. However. with a notable deterioration in financial market efficiency. with high national savings. China.Box 4: The competitiveness of the BRICs amid the global economic crisis Although the present major economic crisis began in the advanced economies. The experience of the four large emerging market BRIC economies is illustrative of this point. Within this group. For a comparative analysis of the competitiveness of the four BRIC economies. Labor markets are ranked a high 13th (up from 34th last year). with China and India each improving by one place and Brazil by a remarkable eight places. those countries that are more competitive are better placed to weather such economic storms as the present one. see Box 4. Of major concern are a perceived lack of government efficiency (110th). This was also mirrored in the results of the expert survey discussed in Box 1. On the other hand. foreign direct investment. in particular. the country is one of the ten biggest improvers in the World Bank’s Doing Business 2009 report. it rapidly spilled over to the developing world through the contagion mechanisms of reductions in trade. with a stable performance overall. which is characterized by strong competition (26th) and reasonably sophisticated business practices (52nd). However. to improve its competitiveness further. moving up 18 spots to 27th place this year. an area one would expect to reflect some effects of the financial crisis. especially labor and goods markets. it has become much easier and less expensive to start a business: the number of procedures required more than halved from 13 to 6. with. goods markets (ranked 108th) and financial markets (ranked 119th) getting poor marks. which rated these same three countries among those on which the global recession will probably have a mildly positive effect on their longer-term competitiveness. although this is mainly because of other countries’ weakening rather than particular improvements in Turkey’s fiscal and monetary policies. now ranked 62nd (especially ports and the electricity supply). moving up from 79th to 64th this year. and low and shrinking government debt. a large budget surplus. posting strong showings in the most recent GCI results. it is important to note that the crisis has not affected developing countries in a homogenous way— some economies are showing a higher resilience and even managing to enhance their competitiveness in the midst of the global downturn. such as upgrading the quality of infrastructure.1: The Global Competitiveness Index 2009–2010 many aspects of the Index. Indeed. Russia falls 12 places this year to 63rd.

each represented by a colored dot. we come to the more complex areas measured by the GCI. Russia is the laggard in the business sophistication pillar. in the 12 pillars of the GCI. Brazil.2 For example. given the structure of its output. In contrast. and with Russia lagging well behind. with companies operating higher on the value chain and successfully exporting value-added products to international markets. with regard to human resources. respectively. and Brazil boast the 2nd. Technological readiness 8.Figure 1: Comparison of GCI scores for the four BRIC economies. 4th. Labor market efficiency 6. There are also some areas in which particular countries perform comparatively well. with especially India but also Brazil above the GCR average and China close to it. Russia. namely innovation and business sophistication—areas on which these countries will need to focus increasingly as they (Cont’d. Financial market sophistication 7. India for financial market sophistication. combined with sound macroeconomic fundamentals—particularly in China and Brazil—might also help to explain why the three have not been affected as strongly by the financial crisis as Russia. Macroeconomic stability 2. and India on the one hand. The figure shows that all of the BRICs do better than the world average in specific areas. and India have benefited from their more diversified production and export structures. Their comparatively developed financial markets. The BRICs also benefit significantly from the economies of scale afforded by their large markets. China. as shown in the figure. A distinction emerges with Russia with regard to the size and structure of the export component of the market size pillar: Russia is less sheltered from price and demand shocks than the others. China. Goods market efficiency 5. 8th. Infrastructure 1. China. Indeed. Innovation 11. Higher education and training 4. the gray bars indicate the average score of the 133 countries included this year. The difference in performance between Brazil. India. and 9th largest domestic markets in the world. but its exports also are dominated by oil and gas (65 percent of total exports in 2007). as well as for labor market efficiency (with India lagging a bit compared with the others). Market size 9. Institutions 1 28 Figure 1 shows the score (on a scale of 1–7) of each of the four BRICs. The country not only exports a large proportion of its GDP (although somewhat less than China).1: The Global Competitiveness Index 2009–2010 Box 4: The competitiveness of the BRICs amid the global economic crisis (cont’d. is also marked in a few other key areas measured by the GCI. and Russia on the other.) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . all four countries are near or above the average country score for health and primary education and higher education and training. Finally. Business sophistication 10. Health and primary education 3. such as China in the areas of infrastructure and macroeconomic stability. and the 133 country sample average 7 Score 1. scoring well ahead of the overall GCI average country score. This has provided a buffer in the face of the economic crisis because they depend less on exports than the average developing country: the sheer size of BRIC economies means that their companies can rely on millions of domestic customers when foreign demand declines. and Brazil with respect to technological readiness.) India Russian Federation Brazil China GCI average 4 12. which partly explains its less positive performance vis-à-vis the external shocks caused by the crisis. Financial markets are more highly developed in the former three countries. In addition.

while GDP growth will be negative in 2009 for advanced economies (with a 2 percent contraction). Yet. and enhancing market efficiency as well as further developing their innovation capacity. and this has been of great benefit through the recent difficulties. can cloud weaknesses in the individual BRICs when held to a more stringent benchmark. improving the educational system remains a significant challenge for Brazil. while Russia remains below average in both pillars. The relatively rosy outlook in relation to most of the world should not be a reason for complacency. shown across the 12 pillars in Figure 2. their competitiveness has improved markedly in recent years. as shown in Figure 2. This represents a downturn similar in proportion to the one suffered by developed economies when one takes into account the higher trend growth rates experienced by the region in past cycles.3 percent in emerging and developing economies. although it is important to give credit to these economies for the strides they have made toward stronger competitiveness underpinnings. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . one should not forget the significant remaining challenges ahead in building better institutional frameworks. The above factors demonstrate how Brazil. Indeed. strengthening human and hard infrastructure. and financial market development is a priority for China. and/or more competitive productive sectors. but rather a powerful incentive to push through the necessary reforms and policies that would fully unleash their enormous competitive potential. and India confronted the crisis from a stronger competitiveness footing than Russia.1: The Global Competitiveness Index 2009–2010 Box 4: The competitiveness of the BRICs amid the global economic crisis (cont’d. Brazil. Indeed. improved business environments. it is important to keep in mind that strong performance vis-à-vis the world average. China. and India again outperform Russia and are assessed as above the overall country average. For example. the comparison of the BRICs with the OECD average. China. it will significantly slow down but still reach 3. demonstrates the efforts still needed across most areas. Notes 1 According to International Monetary Fund estimates (IMF 2009a). which includes several low-income and less-developed economies.) Health and primary education 1 Higher education and training Technological readiness Financial market sophistication Goods market efficiency Labor market efficiency BRICs OECD 29 move up the development ladder. is much more useful for this purpose. A comparison with the OECD average. as discussed in the chapter. be it through enhanced macroeconomic stability. However.Figure 2: Comparison of BRIC and OECD average scores across the 12 pillars of the GCI Institutions 7 Innovation Infrastructure 6 5 Business sophistication Macroeconomic stability 4 3 2 Market size 1. In both these areas. 2 The world average is useful for comparing the BRICs’ performance with that of countries at all stages of economic development.

Australia managed to balance its budget and reduce its public debt to 14 percent of GDP—the second lowest among OECD countries after Luxembourg. Kazakhstan. More generally. Nonetheless. Hong Kong SAR retains its 11th position. and excellent public (14th) and private (9th) institutions. high-tech Taiwan and innovationdriven Korea are grouped together in the region with oil-rich Brunei. and in particular the efficiency of the government (2nd). It places no lower than 8th in all indicators but one. Taiwan is up five places to 12th position overall. thanks to a combination of small improvements in the areas of institutions (38th).Taiwan’s significant progression owes to the fact that the island has now entered the third and most advanced stage of development as defined by the Global Competitiveness Index frame- work.A major labor law reform bill aimed at increasing flexibility while providing a better safety net exists. and continues to lure both investors and companies. the other countries from Asia and the Pacific span the entire GCI ranking. we observe a generalized weakening of the macroeconomic situation (25th. with a great diversity among individual countries. with Timor-Leste (126th) closing the regional ranking. Australia remains a prime location for doing business with efficient goods markets and flexible labor markets (both ranked 9th). With a steep fall in demand for export products. Hong Kong offers one of the world’s most business-friendly environments.To progress even further. Its performance remains very much in line with that of last year. and rendering goods markets more efficient (109th). remoteness.The territory has improved its marks in the infrastructure pillar. particularly the banking sector. Australia also has improved its showing in the financial markets pillar by two places (4th worldwide).The trustworthiness and confidence in the banking system remain essentially intact (4th). Even though the crisis hit the country hard—the Hang Seng Index lost over 60 percent within six months from its peak in November 2008—Hong Kong undoubtedly remains one of the world’s major financial centers. Most importantly. resulting in delays and contractual issues. It is thus the region with the largest spread in performances.The business community’s discontent about the difficulty of hiring and firing employees (108th) is particularly pronounced and mirrored by Korea’s low rank in the World Bank’s Doing Business rigidity of employment index (92nd). In effect. there is a need to upgrade infrastructure (25th). Above all. the only notable improvement coming from the macroeconomic environment (18th. infrastructure (16th). as it struggles with the consequences of the economic crisis. and a near breakdown of the financial system. urban Singapore.The decline is attributable to deteriorations in three categories that were already of concern. By the government’s own account. and public debt were all on the rise in 2008. up 10 positions). Infrastructure is a keystone of Australia’s economy given its large land mass. the quality of public institutions (10th overall). deficient port infrastructure represents a bottleneck in the export process. This leads companies to resort extensively to temporary employment.1: The Global Competitiveness Index 2009–2010 30 The remaining countries from the region place below Russia.This is partly because of its close links with mainland China’s financial market. strengthening financial markets (106th). and education (15th). It continues to top the financial market pillar. Singapore and Japan. the country ranks 118th with respect to labor market flexibility.28 A second area of concern is the financial market. now placing second only to Germany. and to small. perhaps not surprising given that it hosts almost two thirds of the world’s population. interest rate spreads. and trade profile—the country is one of the world’s biggest commodity exporters. past reform efforts will have to continue. particularly ports (50th).27 Korea falls six places to 19th position. the country will need to improve on several measures of business sophistication (26th) and strengthen its innovation capacity (20th).Taiwan now gets fully rewarded for its outstanding capacity to innovate (6th). geographical. in particular aiming at upgrading the institutional environment (120th). and the government posted a small budget deficit. Asia and the Pacific Behind the two regional economies in the top 10. and features in the top 10 in five of the 12 GCI pillars. down seven places): inflation.1. Ukraine faces daunting challenges in the short term.This significant economic. Finally. and if Taiwan can improve on its institutional framework (38th) and the efficiency of its financial market (54th)— by far its two weakest spots—the competitiveness landscape will be even brighter in the years to come. but it has yet to be approved by the parliament. drops one position to 67th place and Ukraine drops by 10 spots to 82nd. and ultimately hurting Australia’s competitiveness. one of the world’s most densely populated countries. Despite the waves of consolidation and The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . the innovation pillar accounts for 15 percent of the overall GCI score. a devaluation of the currency. Provided macroeconomic fundamentals are kept in check. First. with its score decreasing less than that of other large economies. In 2008. for countries in the third stage. and cultural diversity is reflected in the variations in the competitiveness landscape.The regional ranking closes with Tajikistan at 122nd and the Kyrgyz Republic at 123rd. thus creating precarious working conditions and giving rise to tensions—Korea ranks third to last for the quality of relations between employers and workers. Sparsely inhabited Mongolia stands in contrast to countries such as Bangladesh. On a more negative note. Australia improves by three positions to rank 15th overall. continues to be praised by business leaders. although its score and lead are eroding.

In this light. down two).This rapid progression is posing new challenges to China. India. after market size.The sultanate continues to do relatively well in all the categories that matter the most given its stage of development. infrastructure (41st. down 25 ranks). innovation-driven economy. banks are still very much seen as unsound (90th).29 Malaysia (24th) drops three positions. namely institutions (36th. 6th lowest). in just three years. behind only Singapore and three Nordic countries. as reflected in the mediocre level of trust in politicians (67th).dimensions it scores high.The goods market does not The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. which has been aggravated by its large current account deficit. China consolidates its presence in the top 30. As the country moves up the development ladder.Yet the challenges inherent in diversifying away from oil and gas are enormous.The country’s very high growth rates in recent years have moved China from Stage 1 to Stage 2. the potential of terrorism (97th) and crime (95th) both impose significant business costs. an increase attributable to a number of small improvements across the board. and 2nd for the efficiency of corporate boards.The incidence of corruption is minimal by all measures. the strength of auditing standards. up five) and its capacity to innovate (26th. invest in infrastructure. placing New Zealand in 5th position worldwide. every indicator has been exhibiting a downward trend since 2007. According to the business community. essentially as the result of a much poorer assessment of its institutional framework. New Zealand’s infrastructure is in need of upgrading.31 Following last year’s first inclusion. Specifically. it outperforms the other BRIC economies. as reflected in the country’s 35th rank in this area—its lowest for any of the 12 pillars. and pursue economic reforms. which increased in 2008. At 29th. would serve this effort well. very much like neighboring Australia.7 percent. up five). In addition.Yet in most other 31 . Yet Korea continues to be characterized by a number of strengths. It ranks 1st with respect to corporate ethics.Third. supported by efficient goods (8th. A number of measures also reveal the relative rigidity of the labor market. Overall. and the fall in commodity prices.To maintain its competitive edge.32 Brunei tops this latter category thanks to a hefty budget surplus equivalent to one third of its GDP (4th highest). In this area. Up one position from last year. Survey data show a general dissatisfaction with the government. up nine places) and labor (11th) markets. Korea has world-class infrastructure (17th). up two) to move up the value chain.The country maintains or improves its ranking in no less than 85 indicators out of the 113 that compose the GCI. And when it comes to private institutions. But China can already rely on a relatively sophisticated business environment (38th. to a lesser extent. Korea ranks a low 53rd with respect to the quality of its institutions. Security is of particular concern (85th. up five). the environment is extremely conducive to business. particularly ICT penetration. and the burden of red tape (98th).These combined strengths provide the basis for China’s overall strong position in the GCI ranking. After 10 years of uninterrupted growth. Brunei Darussalam leaps seven places to 32nd. New Zealand is second to none. while it remains one of the world’s innovation powerhouses (11th in the innovation pillar). particularly in those factors at the top end of the value chain.Yet the country is not immune to the crisis. ahead of the closest contender. Expectations are high for a country that averaged an impressive 7 percent growth per year between 1990 and 2000 and a healthy 5 percent since then. Improving both the quantity and quality of higher education (41st) and boosting technological readiness (37th). its competitive edge can no longer be based on the use of cheap factors of production alone and increasingly must be based on efficiency improvements.30 The GCI captures a number of these efficiency-enabling factors and reveals that China still presents some shortcomings—in particular with respect to financial market sophistication (81st) and technological readiness (79th). investment in infrastructure projects and incentives to boost innovation capacity would be expected to improve the country’s competitiveness going into the future. Mirroring this economic success. by 20 positions.1: The Global Competitiveness Index 2009–2010 restructuring the sector has undergone since 1997. New Zealand will experience a mild recession in 2009.This will pose challenges for the country to achieve the minimum growth rate—8 percent by the government’s own estimates— necessary to prevent any rise in unemployment and avoid social unrest. high savings (2nd). higher education (61st). the perceived opacity of policymaking (100th).The overall environment is generally not conducive to doing business. Malaysia has featured prominently in the competitiveness rankings ever since its first inclusion in 1994. strong macroeconomic stability (11th). Public institutions are assessed very well. and. it remains the most competitive Stage 2 (efficiency-driven) country. health and primary education (42nd. China’s enviable fiscal situation allows the government to stimulate internal demand. namely business sophistication (24th) and innovation (24th). Indeed. It is the only country within the top 20 to improve its score year on year (4. Also of concern is the budget deficit. Furthermore. amounting to almost 5 percent of Malaysia’s GDP. and an excellent higher educational system (16th). and macroeconomic stability (1st). as measured by the GCI. causing Malaysia to tumble from 17th to 43rd position in this dimension in just two years.9 to 5. within the government’s stimulus plan. and controlled inflation (2. and protection of shareholders. and by one of the soundest financial systems in the world (3rd).0). which drive its overall productivity and keep it placed in the top 20 of the rankings. Malaysia now needs to prepare its conversion into a knowledge-based. New Zealand (20th) advances four ranks and joins the top 20. the high level of household indebtedness.

the assessment of Indonesia (54th) is very much in line with that of the previous three years.This in turn triggered a crisis of confidence. Insufficient protection of property rights (75th) and security (85th) are of particular concern to the business community. the country fails to improve significantly on any of the basic determinants of its competitiveness. Second. bustling financial markets (16th). A wide gap also remains between rural India and its thriving economic and technological hubs. and a number of Indian corporate giants have become major global players or even leaders in their fields. while infant mortality remains high. infrastructure is in need of upgrading (84th). Looking at the most positive aspects of Thailand’s performance.1: The Global Competitiveness Index 2009–2010 32 function efficiently (100th). It is crucial for monetary authorities and the government to bring inflation back under control and restore macroeconomic stability so that Vietnam can reap the benefits of the efforts and successes achieved in other areas. ahead of several advanced economies. which afflicts 1. the sheer size of its domestic (22nd) and foreign (18th) markets is a source of economies of scale. Improvements in these areas would place India on a stronger growth trajectory going into the future. India’s GDP has grown 6. Still at an early stage of development. A widening trade deficit. tuberculosis (142 cases per 100. yet its GDP per capita remains just above US$1. which is expected to shrink between 3 and 4 percent in 2009—the first contraction since the Asian Financial Crisis of the late 1990s. but does not reduce the urgency of making improvements in the other priority areas highlighted above. Sri Lanka is at 79th.The country also boasts fairly well functioning institutions (54th). the Internet (104th). India hosts some of the best universities in the world. some 42 percent of the population lives on less than $1. financial markets. Furthermore. Vietnam is down five positions to 75th. the quality of public institutions continues to deteriorate.25 a day (in PPP international dollars).With respect to public health (78th). and a global rise in commodity prices caused inflation to shoot up to 23 percent in 2008. Unsurprisingly. the level of competition is disturbingly low (106th). and a sharp fall of the dong. the local currency. Indeed. more than twice China’s equivalent figure.Thailand’s technological readiness (63rd) is also lagging. related to this last area. in particular with respect to ports (95th) and roads (94th). At the same time. similar to the situation in India. India is up one position at 49th. higher education. in particular.Thailand has dropped 20 places over the past three years. down two places. the country underperforms on some of the basic determinants of competitiveness. when many economic reforms began in earnest. technological readiness (60th). HIV/AIDS.Three areas—among the most important given Indonesia’s current stage of development—are of particular concern. Mirroring this dichotomy. Finally. Once a member of the top 30.4 percent of the adult population. an overheating economy.1. and malaria (400 cases per 100. and innovation (75th) all exhibit major shortcomings. On the other hand. India’s competitive performance continues to exhibit a rather reversed development pattern. and personal computers (96th) remain among the lowest in the world. Indonesia ranks higher in more complex factors such as business sophistication (40th) and innovation (39th).The country’s competitiveness will therefore increasingly be driven by such efficiencyenhancing factors. First. Like last year. which together account for half of Brunei’s GDP. and a sound banking sector (25th) supported by a vast domestic market (4th largest in PPP terms).000—a third and a tenth.000 population).6 percent per year on average since 1991. the macroeconomic situation (22nd) improved slightly between 2007 and 2008. penetration rates for mobile telephony (116th). Although mobile telephony penetration is among the densest in the world at 124 mobile subscriptions per 100 population. namely health and primary education (101st). while inefficiencies in the labor market (83rd) prevent an optimal allocation of human capital. Ranked 63rd in this category.The efficiency of the labor market (25th) constitutes another strength. Although the country improves in most of the categories of the Index. and the gap with the other countries of the region is widening. It ranks an outstanding 28th in the most complex areas measured by the business sophistication and innovation subindex.The country’s competitiveness inevitably suffers from protracted instability. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . several indicators reveal the poor level of public health: tuberculosis and malaria incidence are among the highest in the world.The third area of concern relates to technological readiness (88th). Thailand (36th) drops for the second year in a row. the use of the Internet (21 users per 100) and computers (6 per 100) remains scarce.The global downturn added to Thailand’s severe political turmoil and social unrest with grim consequences for the country’s economy. of those in China and Russia. respectively. In addition. macroeconomic stability (96th)—though improving—and infrastructure (76th).This certainly bodes well for the future.The government coalition is now faced with the double challenge of jumpstarting the economy and restoring political stability. Addressing and overcoming these challenges is a condition that must be met to further widen the economic base beyond oil and gas.000 population) are all major concerns. big swings in interest rates. Moving up one place. Indonesia is now in transition between being a factor-driven economy and becoming an efficiency-driven one. business sophistication (77th). On a more positive note. Pakistan ranks 101st. ICT penetration rates remain low by all measures and have been improving more slowly than in other countries. the considerable worsening of its macroeconomic situation—dropping from 70th to 112th place—weighs heavily on its economy and competitiveness.

Most notable among these are reduced debt levels and increased foreign currency reserves. up three) improve their performance slightly but remain among the world’s least competitive nations. Costa Rica climbs another four ranks from last year to reach 55th place. The country’s successful early and timely market liberalization and trade opening. thanks to the countercyclical policies followed in recent times of high commodity prices. and well-functioning goods (26th). as well as consistent macroeconomic management have resulted in extremely high growth rates over the last two decades or so.9 percent in 2009.33 At the same time.1 percent— a higher rate than the projected average world growth rate in that year of just 1. Chile leads the region in competitiveness at a stillremarkable 30th place. It is worth noting Costa Rica’s remarkable evolution in the rankings since 2006. and Uruguay (65th).1: The Global Competitiveness Index 2009–2010 namely institutions (104th). and Colombia (0. demonstrating the success of the unique development strategy followed by the country over decades. and.Third in the region. notably through FDI (21st for FDI and technology transfer). and there is still a significant—although closing over the past few years— gap with respect to the second tier of Latin American best performers. Furthermore. 33 . the threat of terrorism bears heavily on the business community. good governance standards. featured in the upper half of the rankings. continuing the upward trend observed last year. macroeconomic stability (114th). an extra US$1 billion to finance the National Copper Corporation of Chile (CODELCO)’s investment activities. it is projected to start growing again in 2010 at 3. to a lesser extent. with dynamic businesses operating high in the value chain (29th) and with an important innovation potential (31st). A number of countries—among them Uruguay (up 10 places). Puerto Rico follows Chile as the second-most competitive economy in Latin America and the Caribbean. highly developed infrastructure (30th). among others. Colombia and Peru (both up 5 places). several economies are still expected to grow moderately in 2009: growth estimates include Panama (2. temporary tax cuts for small enterprises.To make things worse. more than any other economy in the region. a small market size (126th). notwithstanding increasing investment in education and rising educational attainment rates. Fairly stable at 42nd.The main area requiring improvement for Chile going forward remains the unsatisfactory quality of its educational system. among other factors. and financial (32nd) markets— the latter displaying the largest pension industry in the region. with a four-position fall overall. and production and export diversification—notably toward high-tech The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. Bangladesh inches up five ranks to place 106th. while Cambodia drops one rank to 110th.Latin America and the Caribbean The competitiveness landscape described by the GCI this year for Latin America and the Caribbean is fairly encouraging. able to stimulate the economy in the current slowdown with a comprehensive stimulus package. Despite a slight improvement in both cases. Chile also boasts a sophisticated business sector (39th).9 percent. with an overall 13-position improvement since that year. and basic (128th) and higher education (118th).The country displays a rather mixed performance. respectively.The package involves fiscal measures worth US$4 billion.This reflects the rather strong footing of most of the countries in the region that enables them to weather the crisis. primary and higher education continue to be assessed fairly poorly at 96th and 45th ranks. and benefits for the poor. a relatively inefficient goods market (72nd) go hand in hand and are counterbalanced by first-class institutions (20th) and infrastructure (21st). Mongolia falls to 117th place. complete the list of the region’s most competitive economies. labor (41st). pointing to the need for further upgrading if Chile is to catch up with best practice countries and establish an innovation-conducive environment. whereas Nepal (125th. followed by the small Caribbean economies of Puerto Rico (42nd) and Barbados (44th). the region’s important competitiveness potential does not seem to have fully been reflected to date in the GCI rankings. Barbados improves three places to 44th. whereby very poor macroeconomic fundamentals (115th). effectively absorbing technology and knowledge coming from abroad.Trinidad and Tobago (up 6 places). namely Costa Rica (55th) and Brazil (56th). Peru (2 percent). Notably. infrastructure (89th). thanks to the sounder macroeconomic fundamentals achieved in recent years. although average GDP for the region is expected to contract by 1. among other things. Chile’s performance in the GCI is especially boosted by efficient and transparent institutions (35th). Chile is now. It also has a well-developed financial sector (19th) and efficient goods markets (34th). Among the island’s main competitive advantages are its sound innovation and sophistication factors (31st). although it has lost some ground in the last two years. Completing the picture. and US$700 million for infrastructure projects. Indeed. Brazil (up 8 places).34 Besides sound macroeconomic fundamentals (19th). Panama (59th). brought about by the current global economic crisis and lower commodity prices.6 percent). up one) and TimorLeste (126th.This has consistently focused on high-quality education. and Costa Rica (up 4 places)—are realizing important advances in the midst of a major external shock on export demand and financing availability. overtaking Panama (59th) as the best performer in Central America.5 percent). Mexico (60th). as well as excellent primary (6th) and higher (26th) education. Only Chile (30th) appears among the top 30 performers globally.

and is not creating an environment conducive to adopting new technologies (71st in the technological readiness pillar) and generating new ones (78th in the innovation pillar). trade. Further action is needed to liberalize markets. higher education and training. 18. presents the largest improvement in the region.1. high payroll taxes. macroeconomic stability (109th).The GCI assessment highlights further improvements across the board from last year. quality education at all levels (29th for primary education and 44th for higher education and training).1: The Global Competitiveness Index 2009–2010 34 products and eco-tourism. upgrade the educational system.8 million in 2006) because of a number of significant acquisitions and investments abroad made by the national multilatinas that year. notably its extensive and growing domestic market (9th). and a comprehensive value chain breadth (54th). the government has earmarked approximately US$80 billion to support small. and high social contributions—and inefficient goods market (90th). particularly in the efficiency enhancers.40 Mexico’s rank remains unchanged at 60th. at 65th and up 10 places from last year.38 has been at the forefront of the Latin American multilatinas phenomenon by which—thanks to superior technology and organization—local companies have successfully turned global. notwithstanding some improvements in recent years. at 101st.The institutional environment (93rd). from which Brazil’s growth potential critically depends in its current stage of development.36 as well as measures taken to liberalize and open the economy. continues the impressive upward evolution it started last year. the higher education and training system (74th) does not seem to provide the economy with the necessary pool of skilled labor. macroeconomic stability. oil prices. gaining another eight positions. and a particular effort should be made to reduce the high student dropout rates and regional disparities in education attainment and quality.and medium-sized enterprises. overcoming Russia for the first time. and diversifying its economy are now enabling the country to address the recession more effectively. Finally. It also reflects Brazil’s main competitive strengths. and thus realizing an increasing portion of their revenues internationally. On a less positive note. Multilatinas have made this transition notably by investing massively abroad.These include the sound macroeconomic fundamentals already mentioned. notwithstanding recent progress.35 The regional giant Brazil. macroeconomic stability. remains a cause for concern. despite the government’s increased focus. Mexico was the first country to access a new International Monetary Fund (IMF) facility—the Flexible Credit Line—aimed at supporting otherwise sound economies in addressing economic challenges without conditionalities. together with Mexico. in the region and beyond. and a diversified and sophisticated business sector (32nd) with a significant potential for innovation (43rd). housing. have significantly boosted the country’s competitiveness fundamentals. while the poor state of the country’s infrastructure (82nd) represents a potential bottleneck for further economic modernization and diversification. It has made significant progress in various areas.37 Brazil.This is particularly notable given Mexico’s close association with the US business cycle in terms of availability of financing. thanks to a comprehensive network of preferential trade agreements and an important and expanding domestic market. antipoverty programs. and technological readiness. and partially closing the competitiveness gap with India and China among the BRIC economies. notably scientists and engineers (94th). and that exports mainly manufactured products. and the efficiency of the goods (99th) and labor markets (80th) continue to be poorly assessed. a number of shortcomings remain to be addressed for Brazil to fully tap its important competitive advantages and further reduce poverty and income inequality. providing a better environment for private-sector development. Among the anti-crisis measures.The important steps taken since the 1990s toward fiscal sustainability. and the sophistication of its businesses (41st) and innovation potential (34th) as areas of strength. together with high insecurity (125th) due to spiraling and widespread violence and crime. quality local suppliers (47th). are reasons for concern. one of the largest markets in the world available for local companies (11th).41 The important steps taken by Mexico in the last two decades toward more responsible fiscal policies (28th in the macroeconomic stability pillar) as well as in opening. Moreover. one of the most developed financial markets in the region (51st). and the peso. At the same time. including infrastructure. the educational system at all levels (79th and 58th for health and primary education and higher education and training. Moreover.The inefficiency of public institutions (101st).42 A number of competitive advantages underpin Mexico’s competitiveness performance. at 56th. and improve public governance in the country. and remittances. the GCI analysis points to some important weaknesses in key areas for the country’s sustained growth in the medium to long term. demonstrating some resilience to the current international economic downturn.39 However.43 Uruguay. liberalizing.The country’s development model and competitiveness strategy rest on a continuous emphasis on education at large (ranked 52nd for health and primary education and 50th for The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Brazilian FDI outflows exceeded inflows in 2007 (US$28 million vs. Equally worrisome are Mexico’s rigid labor market (115th)—characterized by burdensome labor regulations.The GCI underscores Costa Rica’s fairly good institutional environment (47th). Last but not least. with widespread red tape and insufficient competition. respectively) remains in serious need of upgrading. red tape and rigidities in different sectors continue to affect the country’s business environment. and a diversified and fairly sophisticated business sector (62nd) that displays relatively well developed clusters (53rd).

government efficiency and transparency. Strides toward macroeconomic stability have also been made in recent years.The tendency of the last two administrations to adopt discretionary policies (including a recent attempt to increase taxes on agricultural exports.59 percent in 2008). serious flaws continue to affect the country’s competitiveness landscape.5 percent of GDP in 2008). respectively). are particularly worrisome features in the face of the current global economic downturn. and maximization of the revenues from the country’s rich natural and mineral resources. as well as the nationalization of the private pension system) has eroded the confidence of national and international investors. to a lesser extent. Going into the future. Venezuela falls to 113th place. despite the current administration’s efforts to increase social expenditure and public investment in infrastructure.The dreary quality of its institutional environment. upgrading the country’s poor infrastructure (97th) and educational standards and access at large (91st and 81st for health and primary education and higher education and training. and 78th for goods.8 percent growth rate in 2008 made it among the fastest-growing economies in the region. displaying notably low levels of security for businesses and the population at large (132nd). continuing the upward trend started last year and improving in most of the dimensions assessed by the GCI. successfully absorbing technology from abroad (66th for technological readiness) and with a fairly high innovation potential (63rd). and rather inefficient factor markets (88th. On the other hand. an improved educational system will better cater to the needs of an efficiency-driven economy such as Peru and facilitate technological adoption (77th for technological readiness) and generation (109th for innovation) in the 35 . For Peru to continue to grow in a sustained fashion and fulfill its competitive potential going forward.The country benefits from a fairly educated labor force (59th and 55th on the health and primary education and higher education and training pillars. despite some marginal improvements in macroeconomic stability and infrastructure quality and the sheer size of its market (37th).The GCI assessment continues to highlight major problematic areas in Venezuela’s competitiveness performance.Widespread rigidities in the factor markets remain a cause of concern. and financial (116th) markets. with a projected 2 percent growth rate this year. for which Venezuela continues to be assessed as worst out of all The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1.This will include improving the quality of the institutional environment (90th). thus creating greater incentive for capital outflows. factor markets continue to be unable to allocate resources to their most efficient use because of the many rigidities troubling the goods (124th).51 percent of GDP in 2006 to 53 percent in 2008). this poor showing is mainly due to expansionary fiscal policies and discretionary administrative measures. representing enduring vulnerabilities in the current difficult economic outlook and going forward. On a related note. respectively) are among the areas hindering Colombia’s competitive potential going forward. especially in the labor market (119th). with falling levels of public indebtedness (from 37. notably with a significant reduction of public debt levels in the last few years (reduced from 116. but also. and financial markets.8 percent of GDP in 2006 to 24 percent in 2008) and consistent budget surpluses (2. resulting in high inflation levels (8. poverty levels and income and regional inequalities continue to loom as a cause of social unrest in the country. this has gone hand in hand with goods and labor market liberalization. labor. Peru is up five places to 78th. Colombia has gained five positions since last year and is now placed 69th. respect of the rule of law. the poor institutional environment (101st).domestic market. Among these is its poor macroeconomic environment (91st)—despite windfall oil revenues in recent years.The country has achieved significant advances in macroeconomic stabilization and civil pacification and can count on a rather extensive market size (31st) and sophisticated business sector (60th). Finally. coupled with the reduction in tax revenues brought about by decreased commodities prices. a greater respect for the rule of law. Peru will still be one of the lucky few spared a recession.40 percent of GDP in 2008). and a reduction of red tape will be crucial to restoring investors’ trust in the fairness of the government and in the business environment in Argentina. losing eight positions from last year and continuing the downward trend observed in recent years. a stilldisappointing result given the country’s many competitive strengths and strong GDP growth between the major economic crisis of 2001 and 2008.The country’s impressive 9. the liberalization of the factor markets. labor (123rd). In particular. In particular.1: The Global Competitiveness Index 2009–2010 higher education and training). a number of weaknesses will need to be tackled. Peru also benefits from strengths such as the fairly large size of its market (46th) and its sophisticated and rather deep financial sector (39th). the dismal 126th rank for the quality of the institutional environment highlights the business community’s deep distrust of. despite debt restructuring. infrastructure in sore need of improvement (83rd). However. Argentina climbs three places to 85th place. institutionalization of sound fiscal policies. Although the growth rate is expected to significantly slow in 2009. the expansionary fiscal and monetary policies of recent years have caused the economy to overheat. and even-handedness in dealing with the private sector. and it has among the best regional public governance standards (39th for public institutions). trade and FDI opening. 78th. Furthermore. and pessimism about. in the financial (88th) and goods (78th) markets.The country’s positive recent performance has much to do with the competent monetary and fiscal policy pursued particularly over the last decade. respectively) and a large market size (23rd).The still-high public debt (48.

this mirrors enduring concerns on the part of the business community in Venezuela about the respect of the rule of law.They all exhibit poor governance standards. such as Qatar (22nd). however. and rampant crime and violence.This positive economic performance is reflected in a number of indicators captured by the GCI. some of the more successful reformers. the assessment of its financial markets so far proves more resilient than for many other countries. and 126th (financial market sophistication). and goods and labor markets are more efficient than in previous years. As a result. serious doubts persist about the sustainability of public finances in Dubai and the potential effect a further deterioration may have on the country as a whole. with an estimated 18 percent growth rate in 2009. Middle East and North Africa The Middle East and North Africa region appears to be on average somewhat less affected by the global economic crisis than other emerging regions.The country ranks 71st for the strength of investor protection and 98th for the strength of legal rights. the country moved up by six places from last year’s already high base in the macroeconomic stability pillar. building on the positive trend of the past few years. Restoring investors’ trust in the country’s institutional and business environment would be equally important for unleashing Venezuela’s competitiveness potential going forward.The changing global environment is The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .The upgrading of the institutional framework continues (9th). Although non–oil exporting countries from the region also benefited from the boom through foreign investment and remittances. Qatar is moving in the right direction in many areas of competitiveness.45 The lower score in macroeconomic stability due to rising public debt and lower budget surplus is in line with most other countries’ results in this pillar and therefore does not lead to significant changes in the ranking. the United Arab Emirates (23rd). However.This is a reflection of both absolute improvements—notably in the budgetary surplus and public debt levels—and the poorer macroeconomic performance of many other countries due to the financial crisis and concurrent countercyclical measures. the country’s main sectors of activity are likely to be adversely affected. that businesses assess banks as somewhat less sound than previously (down by five positions to 36th). Ecuador (105th).44 the fastest-growing economy in the Gulf Cooperation Council region. significant differences between countries persist.1. However. as well as underdeveloped factor markets. Suriname (102nd). all countries in the region expect positive growth rates for 2009.The growing distortions in the economy and the high vulnerability of public finance to changes in oil prices are particularly troubling and require urgent structural reform. and the high violence and crime levels in the country. the progress in improving competitiveness has been less pronounced or nonexistent. and Paraguay (124th) lag behind the rest of the region and most of the world in competitiveness. respectively) complete the picture. Additionally. to 13th. at 132nd (goods market efficiency). In many energyexporting countries. Other serious concerns include factor markets that are among the least efficient in the world. and Saudi Arabia (28th). such as mobile telephony (2nd) and broadband (37th). Moving forward. abundant oil windfall profits have triggered a wave of reforms aimed at improving competitiveness. where enrollment rates remain low (93rd). Notwithstanding the current cyclical downturn. and educational systems. and in opening up to foreign investment (it is ranked 13th on the restrictiveness of rules and regulations on FDI). respectively. which was exacerbated by rising food and housing prices in 2008. Over the past year. and to expand credit. Consequently. in spite of the fall in real estate prices. In terms of macroeconomic management.1: The Global Competitiveness Index 2009–2010 36 countries covered by the GCI. infrastructure.With respect to national competitiveness. Underdeveloped infrastructure (106th) and poor educational standards at all levels (81st and 83rd for primary health and primary education and higher education and training. improving competitiveness will necessitate further measures to encourage students to pursue tertiary education. As the global downturn continues to limit the availability of finance and reduces tourism and trade.With the exception of Kuwait and Saudi Arabia. the country has made great strides in harnessing the latest technologies. In addition. although the score has gone down. Qatar takes the lead in the Middle East and North Africa region. displaying common flaws in their institutional environment. The UAE has improved by eight positions to 33rd in this pillar. ranked 21st and 14th. As in previous years. The country continues to weather the economic crisis well thanks to its abundant resources in natural gas remaining. gaining four positions compared with last year’s edition of this Report. the stability of Qatar’s financial sector (35th) would benefit from a stronger protection of investor’s rights. the available data suggest that the UAE has in place the underlying fundamentals of a competitive economy. The United Arab Emirates (UAE) occupies the 23rd position in this year’s Report and 2nd in the region. It has to be noted. 133rd (labor market efficiency). the poorest regional performers—such as Libya (88th) and Syria (94th)—continue to lag behind most of the world’s economies with respect to national competitiveness. the fairness and efficiency of the government in its day-to-day operations and strategy. place in the top tier of the emerging markets. Bolivia (120th). the country’s priorities remain to reduce inflation. such reform should also ensure that public spending on health and education are better targeted. At 22nd. Nicaragua (115th). is another major problem area. red tape.

ranked 28th this year. although public expenditures on education are among the highest in the world (7th). and public and private institutions. Moving forward.The low ranking of 98th reflects in particular rigid employment regulations (108th) and wage-setting processes (118th). high taxes (108th).8 percent of GDP in 2008) have contributed to pulling the ranking on this pillar down to 67th this year. As in previous years. and the sophistication of financial markets and restrictions on capital flows are The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. Tunisia drops four places to 40th in this year’s rankings. in particular with respect to the capacity of government to ensure security (69th) and the efficiency of government operations (51st). the country’s innovative capacity. In addition to the quality of education. and 72nd for tertiary enrollment—have not improved.The other challenges Saudi Arabia will have to address are the fairly rigid labor market (71st) and the trustworthiness and confidence in the financial sector.The protection of property rights has been improved. 45th for secondary. although recovering.1: The Global Competitiveness Index 2009–2010 also reflected in the intensifying competition in goods markets in the Emirates. and are being registered in the country’s performance in the GCI. respectively). the country will have to tackle inefficiencies related to its labor market. remains a key competitive advantage.The government continues to run a small deficit of about 3 percent. four positions down from last year. along with the high level of sophistication of its financial markets. the financial sector. although enrollment rates in secondary and tertiary institutions are fairly low (ranked 66th and 70th. Despite this slightly downward trend. Saudi Arabia has made continuous progress in improving its competitive position in the framework of the ambitious 37 . improving from 98th to 81st. Saudi Arabia has in particular made progress with respect to upgrading its public institutions. and has fairly efficient domestic markets for goods and services (39th). the sophistication of business strategies as well as innovative capacity have deteriorated over the past two years. in particular for air and rail transport. respectively). but retains the lead among the North African countries. and on further boosting the country’s innovative capacity. and inflation. investors cannot rely on the legal framework for protection of their rights (110th).The country’s efficient government institutions (15th) remain its main strength. which remains constrained by the quality of research institutions (53rd) and relative disconnect between universities and businesses (39th). which remain low. although rising recently. remains its main strength.75 percent in 2008) and an increasing budget deficit (2. the challenges to be tackled going into the future are to be found in a number of other basic areas of the GCI. such as engineers and scientists.The deteriorating quality of education in Israel is worrisome because the availability of a welleducated workforce. The consistent upgrading of institutions and infrastructure and rising technological readiness and innovative capacity over the past few years will help the UAE maintain its competitive edge in the longer term. which may in turn have positive effects on the country’s future development path. which was also mirrored in the OECD’s PISA assessment in 2006. the low confidence in the stability of the banking system (94th) and the efficiency of financial markets (68th) will need to be addressed. In the course of the past years.The present economic crisis has also taken a toll on macroeconomic stability in Israel.48 Major reforms in the area of the investment climate. as reflected in the falling public education expenditure as a share of gross national income. education. coming in at 27th. some of the most serious challenges have not been addressed sufficiently. two priorities for Tunisia emerge from the GCI results in order to become more competitive. with a fairly stable performance. Israel’s competitive position continues to erode. Second. Saudi Arabia ranks 28th. this relative stability has lead to a significant improvement in rankings for Tunisia on the related pillar (55th).The quality of education (74th). In light of the recent deterioration in the macroeconomic stability of many countries worldwide. are still assessed as relatively weak. health. corruption has been reduced. As well as addressing the educational system. the macroeconomic environment in the country has remained stable.The country has also made great strides in improving the competitive environment for firms.47 It appears that reductions in overall government spending have affected the educational system. and the judiciary has made gains in independence. provided the basis of the successful technology-focused development strategy followed by the country over the last three decades. although they have held up well in the current financial crisis. the country’s macroeconomic stability. and the judiciary are under way or envisaged. ranked 9th. ranked 9th. remains largely under control. as well as enrollment rates at all levels—Saudi Arabia ranks 109th for primary. First. At the same time. this is buoyed by the still relatively high oil prices in 2008.46 This deterioration is mainly due to a continuously lower assessment of the quality of the educational system (from 15th in 2006 to 65th in 2009). Tunisia boasts fairly well developed infrastructure (37th). Rising inflation (4. Since its first inclusion in the GCR in 2006. and the low participation of women in the labor force (124th). ranked 15th. In particular. public debt appears manageable and is being reduced continuously.The quality of infrastructure (44th) is assessed below levels expected from a country at such a high level of income. Despite these commendable moves. Perhaps more emphasis will be needed on education.10 x 10 program. where quantitative measures still point to low secondary and tertiary enrollment rates (50th and 81st. along with a high level of security (23rd) and an educational system that ensures a good quality of education (29th).

On the other hand.The country continues to benefit from the large size of its economy.1: The Global Competitiveness Index 2009–2010 38 considered burdensome by the business community (89th). 128th position). In addition. South Africa also does reasonably well in more complex areas such as business sophistication (36th) and innovation (41st). requires upgrading (ranked 45th). which have increased in rank from 24th last year to a very high 5th this year. the accountability of private institutions (5th). brain drain from the country (123rd). Although Africa’s economies are less linked than many other parts of the world to global markets.1. from entering the formal labor market. respectively). the persisting labor market rigidities are particularly worrisome. requiring efforts across many areas to place the region on a firmly sustainable growth and development path going forward. despite such concerns. On the other hand. thanks to the significant gains in oil revenues realized in recent years. ranked 127th out of 133 countries. remains the highestranked country in sub-Saharan Africa. the fairly solid private institutions (53rd). the budget deficit and inflation continue to rise.The budget deficit has reached 6. which diminishes its efficiency. to an even greater extent. In this area there has been a notable improvement in the evaluation of the country’s financial markets. despite some progress achieved in the context of a government program. with inflexible hiring and firing practices (125th). indicating strong confidence in South Africa’s financial markets at a time when trust has been eroded in many other parts of the world. and goods market efficiency (35th). labor. 101st). Both countries display fairly solid public institutions (59th for Libya and 56th for Syria) and high levels of security (32nd and 17th. with a stable performance compared with last year. and poor labor-employer relations (121st). financial markets sophistication. The regional ranking closes with Libya at 88th and Syria at 94th. Although government debt has been reduced somewhat (from 105. which allows businesses to exploit economies of scale. South Africa.51 However. The improvement in the overall ranking stems mainly from the upgrading of infrastructure across all categories and from positive developments related to labor market efficiency and. Egypt continues to struggle with serious challenges related to macroeconomic stability (120th). Egypt moves up 11 places to 70th in this year’s GCI rankings. the improvements in transport infrastructure related to the 2010 World Cup is a welcome development that should reinforce South Africa’s competitiveness. South Africa does well on measures of the quality of institutions and factor allocation. Another major concern remains the health of the workforce. Inflexible hiring and firing procedures keep the country’s many unemployed young people. Although some progress has been achieved.50 Furthermore. and the satisfactory quality of the transport and energy networks (55th overall).The country ranks 90th in labor market efficiency.8 percent of GDP (in 2008.7 (in 2008.The labor market continues to be over-regulated. such as intellectual property protection (24th). a large number of whom are well educated. a lack of flexibility in wage determination by companies (123rd). at 45th overall. the region has not been spared from the fallout of the economic crisis: the IMF is projecting a slight decline in GDP for the region in the year ahead.9 in 2008). South Africa’s competitiveness would be enhanced by tackling some enduring weaknesses. South Africa and Mauritius have both maintained a stable performance since last year and are still in the top half of the rankings. overtaking Morocco at 73rd and reflecting recent liberalization efforts in the country. South Africa’s infrastructure. the participation of women in the labor force continues to be low (127th). and inflation is also among the highest in the world at 11. Furthermore. there have been some significant declines registered in countries that were previously making strides ahead. the result of high rates of communicable diseases and poor health The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Libya has the additional advantage of a stable macroeconomic environment (4th). are numerous.8 percent of GDP in 2007 to 85. Sub-Saharan Africa After an impressive upward trend in African GDP in recent years. which places the country 94th overall. as reflected in the 107th position in the rankings. the country’s innovative potential could be at risk with a university enrollment rate of only 15 percent.49 Egypt’s main competitive strengths are the sheer size of its market (26th). particularly by regional standards (it is ranked 24th in the market size pillar). and financial markets. although good by regional standards. Egypt’s banking system continues to lack trustworthiness and solidity. More generally.The business costs of crime and violence (133rd) and the sense that the police are unable to provide protection from crime (106th) do not contribute to an environment that fosters competitiveness. the current global economic turmoil has raised questions about how sustainable this growth will be over the longer term. we continue to note that sub-Saharan Africa as a whole lags behind the rest of the world in competitiveness. benefiting from good scientific research institutions (ranked 29th) and strong collaboration between universities and the business sector in innovation (ranked 25th). In this light. some African countries continue to fare quite well.The poor security situation remains another important obstacle to doing business in South Africa. but face numerous serious challenges related to the inefficiency of their goods. and potentially causing social problems. on the other hand. raising the risk of a degradation of human capital. and there have been measurable improvements across specific areas in a number of other African countries. Also.The challenges.

there are a number of basic weaknesses that are eroding Kenya’s overall competitive potential. strong judicial independence. labor markets could be made more flexible. ranking 16th worldwide for the efficiency of government spending. although it is still in the top half of the rankings and counted as one of the three most competitive economies in the region. is also excellent by regional standards (ranked 32nd).The country’s infrastructure is well developed by regional standards. the judiciary is perceived as independent from undue influence (21st). the transparency and accountability of public institutions have contributed to a stable macroeconomic environment. Botswana’s HIV prevalence rate remains very high (ranked 133rd). educational enrollment rates at all levels of the educational ladder remain low by international standards (ranked 111th. efforts continue to be required in the area of education. Namibia has moved up six ranks to 74th place this year. most particularly its transport infrastructure. the same ranking it held last year. and 115th for primary. the country’s public institutions are assessed as increasingly inefficient (ranked 117th. Health standards are also impressive compared with other sub-Saharan African countries. a drop mainly attributable to the government’s deficit spending. and there is strong public trust in politicians (27th).The country is characterized by strong and transparent public institutions. As mentioned above. After climbing significantly in the rankings last year. air transport. In addition. these rates are for the most part coming down. Supporting this innovative potential is an educational system that—although reaching a relatively small proportion of the population compared with most other countries—gets good marks for quality (34th) as well as for on-the-job training (44th). However. 92nd. Educational enrollment rates remain somewhat low. Botswana’s primary weaknesses are related to the country’s human resources base. leading to an improvement in life expectancy 39 . Beyond the educational weaknesses. and tertiary enrollment. down The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. Despite high spending on education. Private institutions are rated as accountable and improving (ranked 22nd). ranked 98th. Further.The quality of the country’s infrastructure. as well as the incidence of malaria (94th) and tuberculosis (130th). However. and telephony. For example. although there have been measurable improvements in this area since last year. Property rights are well protected (ranked 21st). and 27th for judicial independence. ranked 104th. has fallen five places this year. Yet it is clear that by far the biggest obstacle facing Botswana in its efforts to improve its competitiveness is the health situation in the country. Over past years. particularly roads. up from 42nd last year). the country could do more to harness new technologies to improve its productivity levels.from 52 to 56 years by the most recent estimate. with clear property rights.The economy is also supported by financial markets that are sophisticated by international standards (37th). with particular advances in aspects related to trustworthiness and confidence. respectively). on a par with countries such as Austria and Germany). with strong auditing and accounting standards and a system that protects minority shareholders’ interests. Botswana is rated as the country with the lowest corruption in Africa (ranked 22nd overall. both goods and financial markets function well (ranked 37th and 26th. with improvements registered in both areas since last year. with stringent hiring and firing laws (87th) and wages that are not flexibly determined (105th). Goods and labor markets (77th) function fairly well by regional standards. Among Namibia’s comparative strengths is the quality of the institutional environment (ranked 37th. and the educational system gets mediocre marks for quality. with a weakening especially in its institutional environment. particularly at the university level (placing Mauritius 97th). With regard to weaknesses. secondary. Botswana falls back by 10 places to 66th. Kenya. Kenya’s key strengths continue to be found in the more complex areas measured by the GCI. and both have seen improvements in their functioning since last year. dropping from 22nd to 41st. and a security situation that is good by regional standards (44th). Namibia’s health and education indicators are worrisome.1: The Global Competitiveness Index 2009–2010 indicators more generally. and the second-highest in sub-Saharan Africa. On the educational side. Mauritius is ranked 57th this year. Financial markets also function particularly well. education spending is low. although there has been a weakening in this area since last year. falling from 27th to 66th overall. with relatively easy access to loans and share issues on the local stock market. with small improvements across most of the areas measured by the GCI. 19th for public trust of politicians. and the quality of the educational system receives mediocre marks. although this is an area that has weakened since last year. and the assessment of the quality of the educational system remains poor. Among the country’s strengths are its reliable and legitimate institutions. with low penetration rates of new technologies such as mobile phones and the Internet. respectively). Kenya’s innovative capacity is ranked an impressive 48th. with the rank in this pillar going up from 53rd to 31st this year. Improvements in these areas will enhance South Africa’s competitiveness outlook. However. enrollment rates remain low.The country also continues to be characterized by reasonable macroeconomic management. Continuing to improve the health and education levels of the workforce remain the key priorities for improving Botswana’s competitiveness.The country is ranked a low 115th on the health subpillar. with high company spending on research and development and good scientific research institutions collaborating well with the business sector in research activities. with high infant mortality and low life expectancy—the result in large part of the high rates of communicable diseases.

with reasonable public trust of politicians (ranked 62nd). with goods. respectively. having notably seen a peaceful transition of political power through presidential elections. respectively. and corruption levels lower than in most other countries of the region (71st for ethics and corruption). It also receives poor assessments for its infrastructure (127th) as well as health and primary education (132nd). the adoption of new technologies is low in Tanzania (ranked 120th). Nigeria’s economy is characterized by weak institutions (ranked 102nd). which are ranked 76th and 69th. the extreme mismanagement of the public finances and monetary policy has placed Zimbabwe once again at the bottom of all countries covered with regard to macroeconomic stability (ranked 133rd). The security situation in Kenya is also worrisome.The country’s greatest area of strength remains its macroeconomic environment (ranked 20th). a high national savings rate. and directly following Kenya and Nigeria in the overall rankings. and high interest rate spreads point to inefficiencies in the financial system. In addition. Ghana’s institutions are ranked 68th. and the country is not harnessing new technologies for productivity enhancements (ICT adoption rates are very low). particularly roads and ports. Ghana continues to display excellent public institutions and governance indicators. Infrastructure in the country is underdeveloped (ranked 123rd). On the other hand. down five places since last year. Factor markets also function relatively well by regional standards. government inefficiency (101st). with the government running budget surpluses. ranked 130th and 125th. with poor-quality roads. for which it has often been commended by international leaders in recent years. the quality of the educational system receives a poor assessment. In addition. Nigeria is ranked 99th this year. respectively). In addition. Zimbabwe continues to carry out massive deficit spending. and government spending that is perceived as wasteful (120th). labor. down from 101st last year). and high and rising corruption (116th. engendering unsustainable public debt. 61st. such as the high female participation in the labor force (ranked 4th) and reasonable taxation and firing costs. enrollment rates at the secondary and university levels are among the lowest in the world (ranked 125th and 129th. relative government evenhandedness in its dealings with the private sector (ranked 60th). Related to the education level of the workforce. Finally. having gone from 121st on this pillar last year to a very low 129th this year. Health is another area of serious concern (ranked 119th). down 12 ranks since last year. ranked 118th in this area. the country is not harnessing the latest technologies for productivity enhancements. plagued by undue influence (120th). The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . up to 100th place. and financial markets ranked 62nd. Nigeria also benefits from a relatively large market (42nd). tuberculosis. And even amid the international economic turmoil affecting so many countries. education levels continue to lag behind international standards at all levels. Zimbabwe continues to be among the least competitive economies included in the GCI. Raging hyperinflation that was unparalleled internationally recently pushed the government to suspend the printing of Zimbabwean dollars and to dollarize the economy in the early months of 2009. and a lack of evenhandedness of the government in its dealings with the public (129th) as well as basic government inefficiency (124th). On the other hand. inflation is well into the double digits. the country is characterized by high and increasing macroeconomic instability. and few telephone lines. including a serious security problem (117th). and official markets that are functioning only with great difficulty (particularly with regard to goods and labor markets. And although primary education enrollment is commendably high (25th). low educational enrollment rates.The weakening of Ghana’s performance is attributable to a deterioration of the country’s macroeconomic stability since last year. with poor health indicators and high levels of diseases such as malaria. and HIV. And the basic health of the workforce is also a serious concern. The government is running high and increasing fiscal deficits. debt levels are high. Overall. ports. up from 90th to 74th place this year. Financial markets are also relatively sophisticated (ranked 59th). with a high prevalence of communicable diseases contributing to the low life expectancy of 54 years. The country benefits from public institutions that are characterized by reasonable public trust of politicians (ranked 61st). and a security situation that is good by regional standards (ranked 64th). and electricity supply. Some aspects of the country’s infrastructure are also good by regional standards. high levels of corruption (122nd). and 57th. goods and labor markets continue to be characterized by inefficiencies. Tanzania has seen an impressive improvement this year of 13 ranks. and low national debt. particularly in regard to crime and violence (122nd). the potential of terrorism (127th).1.The institutional environment continues to be ranked among the worst of all countries. respectively).1: The Global Competitiveness Index 2009–2010 40 from 100th last year).Weaknesses in other areas include health (ranked 128th in the health subpillar). with a complete absence of property rights (ranked last out of all countries at 133rd). and the prevalence of organized crime (118th). But Tanzania demonstrates weaknesses throughout most of the other areas measured by the Index. some aspects of the labor markets lend themselves to efficiency. Ghana is ranked 114th this year. relative judicial independence (69th). with very low uptake of ICTs such as the Internet and mobile telephony. high levels of corruption (122nd). as demonstrated by its low rates of ICT penetration. providing its companies with opportunities for economies of scale. ranked second to last at 132nd overall.There has also been a measurable improvement in the sophistication of financial markets.

the crisis has exacerbated macroeconomic instability in some countries. 21 See Romer 1990. The full impact of these actions for future national competitiveness has yet to be seen. 7 In this pillar. notably in goods and services markets. economic performance. this is indeed the case this year.Yet this would be reading the wrong lessons from the crisis. 6 See de Soto and Abbot 1990. the assessment by business leaders of the institutional environment has been affected by revelations of privatesector and public-sector behaviors that contributed to the crisis. It would be dangerous to conclude that the need for more financial regulation in a few highly unregulated economies means that already highly regulated economies should further increase red tape elsewhere. and innovation potential. and Kaplan 2009 for country studies demonstrating the importance of flexible labor markets for higher employment rates and. and Easterly 2002. Amin 2009. 15 Data previously included in this pillar measuring non-wage labor costs have been excluded this year. 12 See Sachs 2001. therefore. and Swan 1956. Grossman and Helpman 1991. 2002. the national accounts register the transaction as an export (so the Netherlands is a foreign market of Belgium). Alesina et al.1: The Global Competitiveness Index 2009–2010 Conclusions This chapter has discussed the results of the Global Competitiveness Index 2009–2010. the GCI provides a platform for dialogue among government. for example. Of course. 1. Examples of GPTs have been the invention of the steam engine and the electric dynamo. is one which in any given period makes a particular contribution to overall economy’s growth thanks to its ability to transform the methods of production in a wide array of industries. 2004 for an extensive list of potential robust determinants of economic growth. according to Trajtenberg (2005). and notably in the soundness of banks and measures of access to capital. and civil society that can serve as a catalyst for productivity-improving reforms. Indeed. each capturing one of the issues more specifically. 13 See Schultz 1961. technological adoption. 17 A general purpose technology (GPT). as well as some government actions taken in response.The GCI demonstrates the extent to which national competitiveness is a complex phenomenon. In other words. 20 This is particularly important in a world in which economic borders are not as clearly delineated as political ones. Lucas 1988. covering 133 countries from all of the world’s regions. with the aim of boosting living standards of the world’s citizens. one Survey-based variable capturing the efficiency of the legal framework for (1) settling disputes and (2) challenging the legality of government actions and/or regulations has been replaced by two variables. with individual governments running up significant deficits through stimulus spending to support demand and thus generating increased debt and expectations that they will generate inflation to reduce the future debt burden. In this context. More generally. countries that have competitive strengths in a variety of areas can be expected to exit the crisis faster and to rebound much more strongly. Related to this point.The crisis has also had consequences on ratings in other pillars.The GCI clearly shows the importance of efficient markets for national productivity and competitiveness. 16 See Aghion and Howitt 1992 and Barro and Sala-i-Martin 2003 for a technical exposition of technology-based growth theories. In response. as they are no longer collected by the World Bank Doing Business group. 9 See Kaufmann and Vishwanath 2001. Notes 1 IMF 2009a. the national accounts register the transaction as domestic (so Nevada is a domestic market of California).national competitiveness environment and to identify those factors most constraining their economic development. 18 See UNCTAD 2009. Most directly. 10 See Aschauer 1989. 2005. business. Rodrik et al. 2 Schumpeter 1942. Solow 1956. and Sala-i-Martin and Subramanian 2003. and Kremer 1993. Acemoglu et al. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 41 . 2001. 2002. Since its introduction in 2004. 5 See de Soto 2000. there has been a weakening in the assessment of financial markets in a number of countries. if the economic crisis affects the longerterm drivers of competitiveness this should be reflected by specific aspects of the GCI. 8 See Shleifer and Vishny 1997. 1994. 14 See Almeida and Carneiro 2009. governments all over the world are now tempted to increase regulation in other aspects of the economy. 11 See Fischer 1993. which can be improved only through an array of reforms in different areas that affect the longer-term productivity of a country. Sala-i-Martin et al. and Aghion and Howitt 1992. when Belgium sells goods to the Netherlands. Rodrik and Rodriguez 1999. More specifically. Zingales 1998. it is important to bear in mind that the present economic crisis is short term in nature and related to the business cycle.These range from good governance and macroeconomic stability to the efficiency of factor markets. under-regulation of the financial sector in the United States and the United Kingdom has been blamed for the economic crisis. Becker 1993. Gramlich 1994. Canning et al. Frenkel and Romer 1999.The clear and intuitive structure of the GCI framework is useful for prioritizing policy reforms because it allows countries to determine the strengths and weaknesses of the 4 See Easterly and Levine 1997. while competitiveness is very much about a country’s development potential over the medium to long term. For example. but when California sells the same kind of output to Nevada. and Feyrer 2009. the GCI has been used by an increasing number of countries and institutions to benchmark national competitiveness. 3 See. among others. 19 See Sachs and Warner 1995.

Rostow in the 1960s (see Rostow 1960). Volume 1.org/menus/ countries. For example. 42 See Noriega 2009. and R.siss. 1: Identifying the Key Issues. however. as well as the more general negative impact on the tourism industry.htm. 31 For a more detailed assessment of China’s competitiveness. 2009.ynetnews. R. the four pillars within the basic requirements subindex account for 51 percent of the overall GCI score for Brunei. the macroeconomic stability pillar has registered a remarkable 17-place improvement over the last two years (gaining 13 places since last year alone). The higher the minerals export share. liquefied gas. “The Colonial Origins of Comparative Development: An Empirical Investigation. see Box 2 in Sala-i-Martin et al. Handbook of Economic Growth. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . 36 In particular. which soared as fuel prices peaked. 41 The recent H1N1 flu epidemic has also hit the economy hard. Aghion and S. Because of this strong dependence on mineral production. For example.The better assessment of the financial markets reflects the fact that Egypt’s banks remained fairly unaffected by the financial turmoil of 2008 because they were not engaged in activities such as the sub-prime lending that took place in the United States.00. MA: MIT Press. 2001. and P. Consequences included the partial economic shutdown of the country for approximately two weeks.1: The Global Competitiveness Index 2009–2010 22 Probably the most famous theory of stages of development was developed by the American historian W. M.1 of The Global Competitiveness Report 2007–2008 for a complete description of how we have adapted Michael Porter’s theory for the present application. the budget deficit was exacerbated by energy subsidies. Aschauer. A. 33 Estimates for Latin America are from CEPAL/ECLAC 2009 and for the world are from IMF 2009a.com/articles/0.7340. “A Model of Growth through Creative Destruction. A. This unconditional facility. Sadia. Amin. Howitt. the three coefficients for each stage had to add up to one. 23 Some restrictions were imposed on the coefficients estimated. 38 According to Santiso 2008. see Mia et al. 1499–1542. and precious stones. Johnson. 2005. The planned establishment of a national statistics bureau will be helpful in this regard.edu. 47 See http://www. 49 Labor market efficiency improved by 8 ranks and financial market sophistication by 22. 27 See. ARCRNSISS (Australian Research Council Research Network in Spatially Integrated Social Science). among the 50 most profitable multilatinas. Report No. for example. 50 While inflation resulted mainly from rising prices for food and building material. E. The government has estimated that the H1N1 flu might shave off an additional half point from national GDP in 2009. In addition to crude oil and gas. a country that exports 95 percent of mineral exports and that. this category also contains all metal ores and other minerals as well as petroleum products. 2009.au/ siss/documents/AFTF_Task_Force_Report.50 percent of GDP in 2006 to 39.gcf. we treat Brunei as an economy in transition from Stage 1 to Stage 2. Here we adapt Michael Porter’s theory of stages (see Porter 1990). 48 See http://www. 40 For a more detailed analysis on Brazil’s competitive potential. Carneiro. References Acemoglu. coal. “Labor Regulation and Employment in India’s Retail Stores. Please see Chapter 1.” Journal of Comparative Economics 37 (1): 28–46. The income and primary exports criteria are weighted identically. 39 The multilatinas are now global players in sectors as diverse as oil and gas. Almeida. however. The data used cover the years 2003 through 2007..html. 44 IMF 2009a. The stage of development for these countries is adjusted downward smoothly depending on the exact primary export share. Cambridge. 42 25 The extent of Iceland’s economic crisis can be grasped by looking at the projected contraction in overall GDP expected for 2009: –10. we use as a proxy the exports of mineral products as a share of overall exports according to the sector classification developed by the International Trade Centre in their Trade Performance Index. in traditional as well as less traditional (Embraer) industries. see Box 3 in Sala-i-Martin et al. Spolaore.L-3478838. food and beverage. 2002. Endogenous Growth. 35 are from either Mexico or Brazil. Further information on these data can be found at the following site: http://www. and P. 1992. W. and high tech. Amsterdam: Elsevier. This was achieved in part by a significant reduction of public indebtedness. 43 For a more comprehensive assessment of Mexico’s competitiveness. Growth and the Size of Countries.. 51 IMF 2009a. Challenges and Directions for Australia’s Urban and Regional Future. “Enforcement of Labor Regulation and Firm Size. metals and mining. Robinson. adopted as part of the precautionary measures to avoid contagion. the country has lost 13 positions in the rankings. steel.html and http://www. cement. Aghion P. 35 For a more detailed analysis on Costa Rica’s performance. 2007.1.org. 11 are Brazilian and 6 are Mexican.” American Economic Review 91: 1369–1401. S. ———. “Is Public Expenditure Productive?” Journal of Monetary Economics 23 (2): 117–200. 32 Exports of oil and gas account for 93 percent of Brunei’s exports. 30 Xinhua 2009. 28 Reuters 2009. Vale. 1998. Alesina. is a preemptive support to otherwise sound economies in their efforts to counter potential effects of the crisis. Durlauf. falling from 65. Available at http://www. Brazilian companies such as Petrobras. “Reversal of Fortune: Geography and Institutions in the Making of the Modern World Distribution of Income. As a result. 2009.2987. 46 Since 2006. Countries that export only primary products would automatically fall into the factor-driven stage (Stage 1). 1989. that gaps in macroeconomic and other data in the United Arab Emirates obfuscate the assessment of the situation somewhat.pisa. Among the 100 most important multinationals from emerging markets. and Embraer are among those that have proven their ability to compete in international markets. 24 In order to capture the resource intensity of the economy.00.oecd.org/pages/ 0.” In P. 29 Parliament of New Zealand 2009.. “Trade. 2009. eds. 37 See UNCTAD 2008. D.pdf. see Hausmann et al. All countries that export more than 70 percent of mineral products are considered to be to some extent factor driven. and the low level of transformation.” Econometrica LX: 323–51.6 according to the IMF (2009a). 45 It has to be noted.intracen. would be in Stage 3 will be in transition between Stages 1 and 2. and J. 2008. the stronger the adjustment and the closer the country will move to Stage 1.40 percent in 2008. ARCRNSISS 2007 and Swan 2009. 2008.. D. November. 1st Edition.” Quarterly Journal of Economics 117 (4): 1231–94. Enrico. and all the weights had to be non-negative.en_32252351_32235731_1_1_1_1_1. 26 Poland has applied for and has been granted the IMF Flexible Credit Facility. 34 The Economist 2009a. based on the income criteria. ———. Stages of development are dictated uniquely by income for countries that export less than 70 percent minerals.” Journal of Comparative Economics 37 (1): 47–61.sa/en/content/10-x-10-program for more information on Saudi Arabia’s 10 x 10 program.

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.......06 Favoritism in decisions of government officials 4..09) and in challenging regulations (1.................. Corporate ethics ...........08 infrastructure ..04 3...... Security ...............................12 Business costs of terrorism 1................... Reported percentages are rounded to the nearest integer.. 1st and 7th pillars) were renumbered accordingly......17 Strength of auditing and reporting standards 1.................14 Organized crime 1....03 Diversion of public funds 1............ but exact figures are used in the calculation of the GCI... note that this year the structure of the GCI has undergone two minor changes......25% A............... Finally.......... from the variable level (i................The number preceding the period indicates to which pillar the variable belongs (e.. the highest level).c For instance.............e.08 Burden of government regulation 1.. Weight (%) within immediate parent category BASIC REQUIREMENTS 1st pillar: Institutions......18 Efficacy of corporate boards 1................03 2...... Efficiency enhancers................The second alteration to the structure is the exclusion of the measure of non-wage labor costs (formerly variable 7.................. Undue influence............20% 1..The computation of the GCI is based on successive aggregations of scores. Those variables that are followed by the symbol1/2 enter the GCI in two different places........07 Wastefulness of government spending 1....................20% 1........ In order to avoid double counting.....50% 1.......01 Quality of overall infrastructure B....... Private institutions .09 and 1.e...05 Judicial independence 1.....................03 3.....e...75% 1.... For example.. It depends on each country’s stage of development..... Government inefficiency .25% A....20% 1...) 45 ...1: The Global Competitiveness Index 2009–2010 Appendix A: Structure of the Global Competitiveness Index 2009–2010 3...........25% 3...... the score a country achieves in the 9th pillar accounts for 17 percent of this country’s score in the Efficiency enhancers subindex. the score achieved on the subpillar Networks and supporting industries accounts for 50 percent of the score of the 11th pillar.....................01 3..... Ethics and corruption......06 2..............10 now measure the degree of efficiency of the legal framework in settling disputes (1.....25% 1..................... the lowest level) all the way up to the overall GCI score (i....... using the weights reported below...05 Government budget balance (hard data) National savings rate (hard data) Inflation (hard data) d Interest rate spread (hard data) Government debt (hard data) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum (Cont’d.02 Intellectual property protection 1/2 2....10)....01 belongs to the 1st pillar...05 2.............09 Efficiency of legal framework in settling disputes 1.........................04 2. and variable 12...............07 2.......This appendix presents the structure of the Global Competitiveness Index 2009–2010 (GCI)..............a The Technical Notes and Sources at the end of this Report provide detailed information on all the hard data indicators... we give them a half-weight in each place by dividing their value by 2 when computing the aggregate score for the two categories in which they appear....20% 1............... the weight put on each of the three subindexes (Basic requirements..........02 3......... Property rights .......13 Business costs of crime and violence 1...............01 Property rights 1..10 Efficiency of legal framework in challenging regulations 1............The variables that belong to the two pillars affected by these changes (i... variable 1.g................ The hard data indicators used in the GCI are normalized on a 1-to-7 scale in order to align them with the Executive Opinion Survey’s results. The numbering of the variables matches the numbering of the Data Tables...... Specific 2.......................... Public institutions.19 Protection of minority shareholders’ interests 2nd pillar: Infrastructure............ as discussed in the text............... Accountability ...15 Reliability of police services B................. Similarly.......................Variables 1.............b The percentage next to each category represents this category’s weight within its immediate parent category..09 on the efficiency of the legal framework has been split into two distinct variables........04 Public trust of politicians 1...16 Ethical behavior of firms 2...... while it represents just 20 percent of the overall GCI score of Australia...Variable 1.50% 2..... a country in the third stage of development..... Unlike for the lower levels of aggregation................02 2........ and Innovation and sophistication factors) is not fixed....... General infrastructure ...11 Transparency of government policymaking 5...04 belongs to the 12th pillar)..20% 1.........03).....50% 1...50% Quality of roads Quality of railroad infrastructure Quality of port infrastructure Quality of air transport infrastructure Available seat kilometers (hard data) Quality of electricity supply Telephone lines (hard data) 3rd pillar: Macroeconomic stability.......... in the case of Dominican Republic—a country in the second stage of development—the score in the Basic requirements subindex accounts for 40 percent of its overall GCI score.....

.......17% A.... Health.....05 Restriction on capital flows 8...17% competition ......17% 5th pillar: Higher education and training.variablef 6.................. Networks and supporting industries ..............................25% A........08 Extent of staff training 9th pillar: Technological readiness.25% 10..07 Soundness of banks 8...04 6.............11 Education expenditure (hard data)1/2 B.....09 Legal rights index (hard data) EFFICIENCY ENHANCERS 46 7.......... Competition .....33% 5....10 4..........06 of education .....08 Availability of latest technologies Firm-level technology absorption Laws relating to ICT FDI and technology transfer Mobile telephone subscriptions (hard data) Internet users (hard data) Personal computers (hard data) Broadband Internet subscribers (hard data) 6th pillar: Goods market efficiency ...11 Prevalence of foreign ownership 6........... Quality 5......01 Secondary enrollment (hard data) 5...............17% A........... Efficiency ....02 Tertiary enrollment (hard data) 4.......08 Regulation of securities exchanges 8..1.........................05 5...09 Willingness to delegate authority 7.....07 7......................... Foreign competition ...50% 11..04 9.13 Burden of customs procedures 10...........11 education . Domestic market size.. Primary 4.... Trustworthiness and confidence .......................07 9........05 Total tax rate (hard data)1/2 6.....04 6......15 Buyer sophistication 7th pillar: Labor market efficiency ........03 State of cluster development B.............................04 Nature of competitive advantage 11.................03 9...05 B...50% Pay and productivity Reliance on professional management1/2 Brain drain Female participation in labor force (hard data) 8th pillar: Financial market sophistication.04 5..50% A.......... Foreign market size ...02 Financing through local equity market 8. Flexibility ............ On-the-job training .............33% 5....17% 9....05 Value chain breadth 11....07 Reliance on professional management1/2 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .........) 4th pillar: Health and primary education .....variablef A.............. Efficient 7..........02 Malaria incidence (hard data)e 4......07 Production process sophistication 11......................02 7...07 Local availability of specialized research and training services 5....02 Foreign market size index (hard data)i INNOVATION AND SOPHISTICATION FACTORS 11th pillar: Business sophistication.......05 9...............1: The Global Competitiveness Index 2009–2010 Appendix A: Structure of the Global Competitiveness Index 2009–2010 (cont’d.............50% 4.....03 Business impact of tuberculosise 4.....02 Local supplier quality 11.04 Venture capital availability 8.06 9.12 Business impact of rules on FDI 6....05 7............03 Effectiveness of anti-monopoly policy 6.....02 9..50% B.03 5................10 Tariff barriers (hard data) 6...................09 Cooperation in labor-employer relations Flexibility of wage determination Rigidity of employment (hard data) Hiring and firing practices Extent and effect of taxation1/2 Total tax rate (hard data)1/2 Firing costs (hard data) use of talent ..07 Time required to start a business (hard data)g 6......33% Quality of the educational system Quality of math and science education Quality of management schools Internet access in schools C....................07 Infant mortality (hard data) 4........03 Ease of access to loans 8...50% 8.......08 Agricultural policy costs 2..01 Financial market sophistication 8.........01 Domestic market size index (hard data)h 1.....06 Number of procedures required to start a business (hard data)g 6............................01 7..........06 Control of international distribution 11............01 Intensity of local competition 6..06 HIV prevalence (hard data) 4.....................................................04 Extent and effect of taxation1/2 6.... Sophistication of firms’ operations and strategy 50% 11.08 Life expectancy (hard data) B................04 Imports as a percentage of GDP (hard data) B............75% 10.......................................14 Degree of customer orientation 6...............06 Strength of investor protection (hard data) A.67% 10th pillar: Market size ...................09 Prevalence of trade barriers 6...........17% A.................. Quantity of education ............... Quality of demand conditions .03 7...01 Local supplier quantity 11..........05 Business impact of HIV/AIDSe 4......................01 9....08 Extent of marketing 11......08 7......02 Extent of market dominance 6... Domestic 6...........06 7.50% Quality of primary education Primary enrollment (hard data) Education expenditure (hard data)1/2 B...33% 6..50% 8...............09 4...................01 Business impact of malariae 4.............04 Tuberculosis incidence (hard data)e 4..........

02 12.05)..02 Intellectual property protection1/2 f The Competition subpillar is the weighted average of two components: Domestic competition and Foreign competition.... The underlying data are reported in the Data Tables. adjustments were made to account for extreme outliers.. normalized on a 1-to-7 scale. reverses it. we rely on a normalization formula that.. tuberculosis. This product is then normalized to a 1-to-7 scale.07 combine to form one single variable..Innovationdriven driven driven stage (%) stage (%) stage (%) Basic requirements 60 40 Efficiency enhancers 35 50 50 5 10 30 Innovation and sophistication factors 1.... PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP. and 10.. regardless their scores on the related Survey question.. i The size of the foreign market is estimated as the natural log of the total value (PPP estimates) of exports of goods and services... country scores for those groups are computed as follows: (sum of scores on full-weight variables)   (sum of scores on half-weight variables) (count of full-weight variables)   (count of half-weight variables) c As described in the chapter. Data are then normalized on a 1-to-7 scale.. government spending (G). and exports (X)..g. government debt)... in order to estimate the impact of each of the three diseases.07 Utility patents (hard data) 1.. Domestic competition is the sum of consumption (C).. Notes a The standard formula for converting hard data is the following: (country score – sample minimum) 6 x + 1 (sample maximum – sample minimum) The sample minimum and sample maximum are. we combine its incidence rate with the Survey question on its perceived cost to businesses...03 12.04.. minus the total value (PPP estimates) of exports of goods and services.. + 7 (sample maximum – sample minimum) b For those groups of variables that contain one or several halfweight variables.05 Capacity for innovation Quality of scientific research institutions Company spending on R&D University-industry collaboration in R&D Government procurement of advanced technology products 12. Note that countries with zero reported incidence receive a 7.06 and 6.. investment (I).. The underlying data are reported in the Data Tables section (see tables 10.03.) 20 d In order to capture the idea that both high inflation and deflation are detrimental.04 12. inflation enters the model in a U-shaped manner as follows: for values of inflation between 0.. and HIV/AIDS on competitiveness depends not only on their respective incidence rates. a country receives the highest possible score of 7. Outside this range. respectively. scores decrease linearly as they move away from these values.50% 12. The relative importance of these distortions depends on the relative size of domestic versus foreign competition. To combine these data we first take the ratio of each country’s disease incidence rate relative to the highest incidence rate in the whole sample. 10... respectively: (country score – sample minimum) –6 x h The size of the domestic market is constructed by taking the natural log of the sum of the gross domestic product valued at PPP plus the total value (PPP estimates) of imports of goods and services. disease incidence.. This interaction between the domestic market and the foreign market is captured by the way we determine the weights of the two components.. in addition to converting the series to a 1-to-7 scale.. Thus we assign a weight of (C+I+G+X)/(C+I+G+X+M) to Domestic competition and a weight of M/(C+I+G+X+M) to Foreign competition. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP.1: The Global Competitiveness Index 2009–2010 Appendix A: Structure of the Global Competitiveness Index 2009–2010 (cont’d. the included variables provide an indication of the extent to which competition is distorted... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 47 . For those hard data variables for which a higher value indicates a worse outcome (e.. In both components. g Variables 6. so that 1 and 7 still corresponds to the worst and best possible outcomes. Therefore. In some instances....12th pillar: Innovation..... The inverse of this ratio is then multiplied by each country’s score on the related Survey question. the weights are the following: Weights FactorEfficiency... while foreign competition is equal to imports (M).9 percent.06 Availability of scientists and engineers 12. the lowest and highest country scores in the sample of countries covered by the GCI.01 12... e The impact of malaria.5 and 2... but also on how costly they are for business.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Executive Opinion Survey:
Capturing the Views of the
Business Community
CIARA BROWNE, World Economic Forum
THIERRY GEIGER, World Economic Forum

The Global Competitiveness Report has, over the last three
decades, become one of the world’s most respected
assessments of national competitiveness, providing a
mirror image of a nation’s economic environment and
its ability to achieve sustained levels of prosperity and
growth. In view of presenting an image that is as close
to reality as possible, the World Economic Forum draws
its data from two sources: international hard data sources
and the Executive Opinion Survey (Survey).The Survey
is a unique tool for capturing timely and vital information that is not available on a global level. It captures the
perception of business executives about the environment
in which they operate, thus imparting a unique source
of insight about the competitiveness of their economy.
The World Economic Forum has conducted the
annual Survey for 30 years.The Survey has evolved over
time to capture new data points essential to the Global
Competitiveness Index and several other projects.The
Survey has also expanded in its scope of completion,
achieving this year a record sample of over 13,000 surveys
from 133 countries between January and May 2009.
Following the editing process (see below), a total of
12,614 surveys were retained.This represents an average
of 95 respondents per country.Table 1 shows key attributes of the Survey respondents for the 2009 dataset.
The Survey is divided into 13 sections related to
the 12 pillars of the Global Competitiveness Index,
and includes a general “About your company” section
capturing information about the respondent’s company
as well.The data gathered thus provide a unique source
of insight and a qualitative portrait of each nation’s economic and business environment, and how it compares
with the situation in other countries. Given the scope
of the Survey’s coverage and in order to maximize its
outreach, it is translated into more than 20 languages.

Geographic expansion
In 1979, on the occasion of the Forum’s 10th anniversary, the first competitiveness report using survey data
covering just 16 European countries was launched.Thirty
years later, the Survey is conducted in 133 economies
from all the world’s regions (see Figure 1 for details).This
year the Report does not, for the first time in many years,
include any new countries although continued efforts
are made to cover those not yet included.1 Although
the Forum aims to present comprehensive international
coverage, expansion to additional countries may be
constrained by the absence of adequate infrastructure
to support the Survey process in some areas, and also
because some of the hard data sources are themselves
not available for some countries. Furthermore, the first
quarter of 2009 was a difficult time for conducting a
survey given the business executives’ concerns related
to the global economic downturn. Nonetheless, the 133
economies included in the Report account for more than

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.2: The Executive Opinion Survey

CHAPTER 1.2

49

1.2: The Executive Opinion Survey

Figure 1: Country/economy coverage of the Executive Opinion Survey

I 2009 coverage

50
98 percent of the world’s total gross domestic product,
demonstrating that the findings are indeed global in scope.

Survey structure and methodology
The Survey is reviewed and streamlined every year
to reflect the variables captured in the Global
Competitiveness Index (GCI), which is at the heart of
this Report. The 2009 Survey was very much aligned
with the previous edition.
Most questions in the Survey follow a structure
asking participants to evaluate, on a scale of 1 to 7, one
particular aspect of their operating environment. At one
end of the scale, 1 represents the worst possible situation,
and at the other end of the scale, 7 represents the best
(see Box 1 for an example).
In view of reaching out to business executives at
national level, the Forum has established a close collaboration with its network of over 150 Partner Institutes
that administer the Executive Opinion Survey in their
respective countries.The Partner Institutes are, for the
most part, recognized economics departments of national
universities, independent research institutes, or business
organizations.2 The valuable collaboration helps to
ensure that the Survey is conducted in a consistent
manner across the globe. In addition, the Partner
Institutes also take an active part in disseminating the
findings of the various competitiveness report series
by holding events or press conferences to explain the

Box 1: Example of a typical Survey question
How would you rate the intellectual property protection,
including anti-counterfeiting measures, in your country?
Very weak < 1 2 3 4 5 6 7 > Very strong

Circling 1....means you agree completely with the answer
on the left-hand side
Circling 2....means you largely agree with the left-hand side
Circling 3....means you somewhat agree with the left-hand
side
Circling 4....means your opinion is indifferent between the
two answers
Circling 5....means you somewhat agree with the right-hand
side
Circling 6....means you largely agree with the right-hand side
Circling 7....means you agree completely with the answer on
the right-hand side

results at the national level.The further dissemination
outreach allows the Report’s findings to be used as a tool
for improving the competitiveness outlook in each
country, whether by the policymaker or the business
executive.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1. Prepare a “sample frame,” or large list of potential
respondents, which includes firms representing
the main sectors of the economy (agriculture,
manufacturing industry, non-manufacturing
industry, and services).
2. Separate the frame into two lists: one that
includes only large firms, and a second list that
includes all other firms (both lists representing
the various economic sectors).5
3. Based on these lists, and in view of reducing
survey bias, choose a random selection of these
firms to receive the Survey.6
An additional feature of the 2009 Executive Opinion
Survey process was to ask the Partner Institute to collect
a combination of random respondents with some repeat
respondents for further comparative analysis. Despite the
significantly increased complexity of the process this year,
the 2009 Survey guidelines were carefully followed by a
large majority of Partner Institutes, improving the robustness of the sample.
Beyond the sampling guidelines, the actual administration of the Survey to the selected group of companies
is tailored at the national level to differences in infrastructure, distance, cultural preferences, and other such factors.
For example, in some instances, the Partner Institute
may deem that face-to-face interviews with business
executives are the most effective method, as opposed to
a mailing or telephone interview method, or offering
the online version as an alternative.
Over the past year, the online completion of the
Survey has increased further. Specifically, this year there
has been an increase of 7 percentage points—online
participation now represents 27 percent of all responses,
with over 10 countries using the online system solely
and 27 percent of countries having an online usage
above 70 percent.The online Survey is available in 15
languages.

Who else uses the Executive Opinion Survey?
The Survey data used for the calculation of the Global
Competitiveness Index as the backbone of The Global
Competitiveness Report is also used as a prime data source
for the Forum’s industry-specific reports, including The
Global Information Technology Report,The Travel & Tourism
Competitiveness Report,The Global Enabling Trade Report,
The Gender Gap Report, and The Financial Development
Report. The data are also used extensively for regional
studies. Most recently, the Forum published The Mexico
Competitiveness Report,The Brazil Competitiveness Report,
The Africa Competitiveness Report, and The Lisbon Review.
In addition, the Executive Opinion Survey data have
long served a number of international and national organizations, government bodies, academia, and private-sector
companies for their policy or strategy review. For example,
the data are used for the elaboration of the renowned
Corruption Perceptions Index and the International Bribe
Payers Index published by Transparency International
and for the global review of business perceptions and
the response to the HIV/AIDS epidemic produced by
Harvard School of Public Health in collaboration with
the Forum’s Global Health Initiative, as well as a number
of academic publications.
Finally, an increasing number of national competitiveness reports that make use of or refer to the Executive
Opinion Survey data are being published worldwide.

Data treatment and score computation
The previous sections described how the Survey is actually conducted and the data collected.The following
pages describe in detail how the data are then processed
to arrive at country-level scores.These results,7 together
with hard data indicators, then feed into the GCI, as
well as other projects as described above.
Data editing

The collected respondent-level data are subjected to a
careful editing process.The first editing rule consists
of excluding those surveys with a completion rate inferior to 50 percent.8 This is because partially completed
surveys likely demonstrate a lack of sufficient focus on
the part of the respondent. In a second step, a multivariate outlier analysis is applied to the data using the
Mahalanobis distance technique.This test assesses
whether each individual survey is representative, given
the overall sample of survey responses in the specific
country, and allows for the deletion of clear outliers (see
Box 2 for more detail).

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.2: The Executive Opinion Survey

To this end, and in order to obtain a representative
and comparable sample of Survey responses from each
economy, the Partner Institutes are each year required to
follow a detailed set of guidelines.The process has been
in constant review with the advice of an internationally
renowned survey consultancy and in collaboration
between the World Economic Forum and the Institute
of Strategy and Competitiveness at the Harvard Business
School.3 In this way, the process is moving toward a best
practice procedure, ensuring greater data accuracy and
allowing for more robust comparison across economies.
The Survey sampling follows a dual stratification
based on the size of the company and the sector of
activity.4 Specifically, the Survey sampling guidelines ask
the Partner Institutes to carry out the following steps:

51

1.2: The Executive Opinion Survey

52

Table 1: Distribution of respondents to the Executive Opinion Survey 2009 by country and firm size
Sample size
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Côte d’Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Gambia, The
Georgia
Germany
Ghana
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Libya

Count*

100
74
85
78
67
87
79
58
89
64
68
92
48
99
99
181
44
107
39
80
93
69
100
136
77
373
235
42
94
82
86
86
49
61
65
83
74
81
98
53
128
84
83
86
132
78
88
102
91
39
96
38
120
90
78
85
93
53
150
95
124
112
95
52
79
85
50
31

Online (%)

0
0
99
0
13
36
0
98
0
42
94
0
100
0
3
54
36
0
0
0
0
0
71
0
26
2
18
74
0
40
0
52
100
3
11
1
32
100
0
100
1
0
100
28
6
51
0
0
13
26
0
100
20
0
58
99
3
2
6
4
2
0
0
13
0
79
0
100

Respondents by firm size as a share (%) of country sample
<101

68
61
24
62
42
7
68
52
33
41
43
90
83
90
64
20
59
49
62
80
35
59
32
91
14
25
43
48
74
40
51
22
31
46
35
27
28
60
71
28
27
77
66
24
54
18
40
75
56
38
20
68
16
31
36
33
32
58
12
44
43
58
34
50
67
58
84
61

101–
500

501–
1,000

1,001–
5,000

5,001–
20,000

>20,000

No response

29
18
27
29
21
32
23
28
20
38
21
5
8
7
25
21
30
40
28
11
28
32
18
5
29
26
37
26
13
24
40
38
39
33
51
23
47
33
20
40
19
15
22
21
32
15
28
17
25
15
39
24
18
36
24
46
20
21
20
33
41
22
27
21
27
20
10
3

2
12
14
4
10
28
5
10
17
16
9
0
6
1
7
23
5
7
3
6
17
4
8
0
14
13
8
14
6
13
7
21
10
8
6
25
11
2
3
11
8
1
4
3
9
26
11
4
8
3
21
3
8
10
15
9
2
9
29
12
6
5
9
6
1
8
2
10

1
5
19
5
16
25
4
10
19
6
16
0
2
2
3
24
5
1
3
0
15
3
25
1
27
22
8
7
3
17
2
15
18
11
6
23
14
4
2
19
13
1
6
20
5
31
15
2
8
15
19
5
28
14
19
9
30
11
25
11
6
10
17
15
3
8
0
13

0
1
12
0
9
6
0
0
10
0
4
0
0
0
0
7
0
1
0
0
2
0
11
0
8
9
3
5
3
2
0
2
2
2
2
1
0
0
0
2
15
0
0
13
0
8
5
1
3
21
0
0
19
7
5
2
6
0
9
0
0
2
7
6
0
4
0
10

0
0
5
0
1
1
0
0
1
0
7
0
0
0
0
4
0
0
0
0
0
0
5
0
5
6
1
0
0
1
0
1
0
0
0
1
0
0
0
0
17
0
0
19
0
3
1
0
0
3
1
0
11
2
0
0
9
0
5
0
1
0
5
2
0
0
0
0

0
3
0
0
0
1
0
0
0
0
0
4
0
0
1
1
2
3
5
3
2
1
1
3
3
0
1
0
0
1
0
0
0
0
0
0
0
0
3
0
1
5
2
0
0
0
0
1
0
5
1
0
1
0
0
0
0
0
1
1
2
3
0
0
3
2
4
3

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Sample size
Country/Economy

Count*

Online (%)

Respondents by firm size as a share (%) of country sample
<101

101–
500

501–
1,000

1,001–
5,000

5,001–
20,000

>20,000

No response

Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malawi
Malaysia
Mali
Malta
Mauritania
Mauritius
Mexico
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Timor-Leste
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe

102
38
91
101
95
68
79
65
58
58
154
83
82
103
67
55
101
119
47
83
123
86
168
300
92
129
89
39
184
81
65
80
45
368
104
98
78
144
65
110
44
103
100
36
38
103
126
62
99
97
86
31
34
83
96
101
105
122
122
404
88
36
144
91
54

62
21
11
0
2
34
0
60
0
24
87
0
0
0
3
7
2
90
100
20
1
60
96
1
1
18
1
0
76
7
97
100
33
1
1
0
0
48
72
1
57
52
0
0
79
66
13
56
0
1
0
0
68
16
3
0
2
14
95
96
1
100
1
0
24

26
45
44
74
62
35
66
74
84
40
25
42
87
66
57
47
54
25
17
47
66
24
20
41
49
60
9
21
32
28
54
20
67
26
21
65
40
25
32
48
14
36
31
78
16
43
72
2
76
64
19
81
29
39
6
62
35
15
48
68
55
44
48
63
15

52
24
46
18
29
31
23
18
10
40
10
51
9
25
27
25
38
22
21
40
21
28
42
28
29
28
45
28
29
28
17
31
9
27
29
27
50
36
40
29
14
25
40
22
32
13
21
24
18
25
29
16
41
45
65
32
31
39
15
6
31
22
40
23
33

14
21
4
3
1
10
5
3
0
9
12
6
0
4
12
15
2
11
15
7
7
14
15
9
10
7
22
13
19
12
12
11
9
27
13
4
5
17
11
8
5
5
18
0
5
12
2
21
2
5
17
0
12
10
19
4
16
9
6
1
11
8
8
4
26

6
8
5
4
5
15
3
3
0
10
25
0
0
2
4
11
5
23
28
5
4
28
13
14
10
2
17
23
17
21
14
15
13
15
27
3
5
18
15
8
25
17
8
0
13
20
4
35
4
4
24
0
18
6
8
0
10
22
15
7
3
19
2
8
20

1
3
0
1
1
6
0
0
0
0
11
0
0
2
0
0
1
11
19
0
2
3
8
6
2
0
6
8
2
7
3
0
0
1
6
0
0
3
2
2
18
9
2
0
29
8
0
11
0
0
8
3
0
0
2
2
4
9
6
6
0
6
0
1
6

0
0
0
0
0
1
0
0
0
0
15
1
0
0
0
0
0
8
0
0
0
1
1
2
0
0
1
5
1
0
0
0
2
2
5
0
0
0
0
5
25
8
1
0
5
4
0
6
0
0
2
0
0
0
0
0
1
3
11
11
0
0
1
0
0

1
0
0
0
1
1
4
2
5
2
1
0
5
1
0
2
0
1
0
1
0
1
1
0
0
2
0
3
1
2
0
23
0
1
0
1
0
1
0
0
0
1
0
0
0
1
0
0
0
2
0
0
0
1
0
0
2
2
1
0
0
0
1
1
0

TOTAL/AVERAGE (%)

12,614

27

44

27

10

12

4

3

1

*Final count, after editing of the data. See text for details.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.2: The Executive Opinion Survey

Table 1: Distribution of respondents to the Executive Opinion Survey 2009 by country and firm size (cont’d.)

53

1.2: The Executive Opinion Survey

54

Data weighting: Sector-weighted country averages

Box 2: A multivariate outlier detection technique:
The Mahalanobis distance
The Mahalonobis distance measure is used to estimate
the likelihood that one particular point of N dimensions
belongs to a set of such points. It extends a standard
Euclidean measure of distance by taking into account the
variance and covariance of points in the set across the N
dimensions. It is therefore perfectly suited for the treatment
of survey data. In effect, one single survey made up of N
answers can be viewed as the point of N dimensions, while a
particular country sample c is the set of points. The
Mahalanobis distance is used to compute the probability that
any survey i does not belong to the sample c. If the probability is high enough—we use 99.9 percent as the threshold—
we conclude that a survey is a clear outlier and does not
“belong” to the sample.
There is a limitation in applying this technique to the
Survey data. In order to compute the Mahalanobis distance,
the number of surveys in a country (i.e., the set of points)
must be greater than the number of questions considered
(i.e., the dimension or “degree of freedom”). Given the limited
number of respondents in many countries, we cannot include
all the Survey questions—over 150—and therefore limit the
test to a group of 67 questions, selected for their relevance
and placement in the Survey instrument. This allows us to
calculate the measure in 106 country samples. A total of 168
surveys in 14 countries were excluded based upon the
Mahalonobis outlier test.

Following the multivariate outlier test, a univariate
outlier test is applied at the county level for each question
of each Survey.We use the standardized score—or “zscore”—method, which indicates by how many standard
deviations any one individual answer deviates from the
mean of the country sample. Formally, this is calculated
as follows:

=

,

Once the data have been edited, individual answers are
aggregated at the country level.We compute sectorweighted country averages to obtain a more representative
average that takes into account the structure of a country’s economy.The structure is defined by the estimated
contributions to a country’s gross domestic product of
each of the four main economic sectors: agriculture,
manufacturing industry, non-manufacturing industry,
and services (see Table 2).9
An additional step is taken to prevent individual
responses within a sample from receiving an excessive
weight when the structure of the sample and the underlying economy differ greatly. As an extreme example,
imagine the case of a country where just 3 percent of
responses came from the services sector, but that sector
actually represents 90 percent of the country’s economy.
By applying the above sector-weighting scheme, we
would be giving a very high weight to a very few
surveys.This is avoided by trimming the sector weights.
When for a country the ratio of the weight of one sector
in the economy to the percentage of surveys from that
sector in the country sample exceeds 5, the sector weight
used for the weighted average is capped to five times the
percentage of surveys from that sector in the sample.The
weights of the other sectors are then adjusted proportionally to their weight in the country’s GDP.
Formally, the sector-weighted country average of a
Survey indicator,
, is computed as follows:

with

,

where
is sector s’s contribution to the economy of
country c (e.g., .36 for the services sector in Bahrain);
and
is the mean of the responses from sector s in
country c (
is response j from sector s and country c
and
is the number of responses from sector s in
country c ).

where
is respondent i ’s answer to question q in country
c; and
and
are the average and standard deviation,
respectively, of individual answers to question q within
country c’s sample.
Individual answers with an absolute value for
greater than 3 are dropped.

Data weighting: Moving average

As a final step, the sector-weighted country averages for
2009 are combined with the 2008 averages to produce
the final country scores that are used for the computation of the GCI 2009–2010 and for other projects.10
This moving average technique, introduced in
2007, consists of taking a weighted average of the most
recent year’s Survey results together with a discounted
average of the previous year.There are several reasons
for doing this. First, it makes results less sensitive to the
specific point in time when the Survey is administered.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

10/7/09

11:36 AM

Page 55

Table 2: Sectoral value-added as a share (%) of GDP

Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Cote d’Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Gambia, The
Georgia
Germany
Ghana
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Libya

Agriculture

Manufacturing
industry

21
8
9
20
2
2
6
0
19
4
1
32
13
10
2
6
1
6
33
35
32
19
2
23
4
11
9
9
24
7
2
3
1
12
7
14
12
3
46
3
2
29
11
1
34
4
11
31
13
0
4
6
18
14
10
2
3
2
6
1
3
6
26
3
0
34
3
12
2

12
5
21
17
11
20
6
12
18
7
17
8
15
13
3
18
10
17
14
9
19
17
16
6
14
34
18
21
18
21
8
27
14
13
10
16
22
18
5
24
12
5
12
23
8
13
18
8
20
3
22
10
16
27
11
23
22
18
13
21
19
12
11
28
2
11
11
19
4

Nonmanufacturing
industry
Services

8
56
12
27
18
11
67
51
11
11
7
6
22
8
46
11
61
16
9
11
8
14
16
38
33
15
18
8
8
11
11
12
11
14
27
21
6
13
8
9
8
10
12
7
18
10
10
16
8
5
8
14
13
20
34
12
10
9
20
9
10
28
7
11
49
8
11
28
76

59
31
57
36
69
67
21
36
52
78
75
54
51
69
49
66
28
61
44
45
41
50
66
32
49
40
56
63
51
61
79
59
73
60
56
50
59
67
40
65
77
56
65
69
41
73
61
44
59
92
66
71
52
39
45
63
63
71
61
68
67
53
56
58
49
47
75
41
18

(Cont’d.)

Country/Economy

Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malawi
Malaysia
Mali
Malta
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Syrian Arab Republic
Taiwan, China
Tajikistan
Tanzania
Thailand
Timor-Leste
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe

Agriculture

Manufacturing
industry

5
0
12
26
34
10
37
3
13
5
4
12
23
11
14
28
11
34
2
7
19
33
1
2
21
7
22
7
14
4
3
1
0
9
5
3
14
13
0
3
2
3
3
12
5
2
1
18
2
21
45
11
9
0
10
9
24
8
2
1
1
10
4
20
22
19

19
8
19
16
14
28
3
22
5
20
19
14
4
9
15
15
11
8
13
16
19
3
10
8
19
7
13
16
22
18
15
40
8
22
19
10
14
25
25
22
23
18
16
19
14
20
20
12
25
20
7
35
3
6
17
19
8
23
12
14
14
23
16
21
11
14

Nonmanufacturing
industry
Services

14
6
11
2
6
20
21
75
42
8
17
1
37
11
12
10
19
9
11
9
11
37
33
47
8
9
7
21
10
14
10
3
64
14
19
56
9
4
6
14
11
13
14
11
22
9
8
23
4
8
10
9
21
53
12
9
18
14
47
10
8
9
41
20
27
10

Source: World Bank; Economist Intelligence Unit; national sources.
Note: Data are for 2007 or the most recent year available.

61
85
59
56
45
42
39
41
67
60
73
36
69
59
47
59
49
74
68
51
28
56
43
53
77
58
56
54
65
73
56
28
55
57
32
62
59
69
61
63
66
67
58
59
70
71
47
70
51
37
45
68
41
60
63
50
55
39
76
77
58
38
38
40
57

1.2: The Executive Opinion Survey

Part 1

55

1.2: The Executive Opinion Survey

Box 3: Country score calculation
For any given Survey question qi , country c’s score, qi,c08–09 , is given by:
qi,c08–09 ⫽ wc2008 ⫻ qi,c2008 ⫹ wc2009 ⫻ qi,c2009

(1)

where
qi,ct is country c ’s score on question qi in year t, with t = 2008, 2009, as computed following the
approach described in the text;
t
is respondent n ’s response (on a 1–7 scale) to question qi in year t;
qi,n,c

Nct is the sample size (i.e., the number of respondents) for country c in year t; and
wct is the weight applied to country c ’s score in year t (see below).

The weights for each year are determined as follows:
(1⫺␣) ⫹
2008

c

w

2008
c
2008
2009

c
c

N

N

N

(2a)

2

and
␣⫹
wc2009⫽

N

N

N

2

.

(2b)

Plugging equations (2a) and (2b) into (1) and rearranging yields:

2008
2009
1
1
⫻ (1⫺␣) ⫻ qi,c ⫹ ␣ ⫻ qi,c


2
2

Nc2008
Nc2009
2008
2009
.
⫹ 2008
⫻ qi,c
2009 ⫻ q i,c
N ⫹ Nc
Nc ⫹ Nc2009
2008
c

(3)

qi,c08–09 ⫽

discounted-past weighted average

sample-size weighted average

In equation (3), the first component of the weighting scheme is the discounted-past weighted average.
The second component is the sample-size weighted average. The two components are given half-weight
each. The value for  is 0.6, which corresponds to a discount factor of 2/3. That is, the 2008 score of
country c is given 2/3 of the weight given to its 2009 score. One additional property of this approach is
that it prevents a country sample that is much larger in one year from overwhelming the smaller sample
from the other year.
The same treatment is applied to the results of the previous editions of the Survey. That is, for any
two consecutive editions t and t+1 of the EOS, country c’s score on question i is computed as follows:

qi,ctt ⫽
, +1

t
t
1
1
⫻ (1⫺␣) ⫻ qi,c ⫹ ␣ ⫻ qi,c ⫹

2
2
+1

Nct
N ⫹ Nct+1
t
c

Nct

t

⫻ qi,c ⫹

+1

N ⫹ Nct+1
t
c

t+1

⫻ qi,c

冥.

Example

For the sake of concreteness and clarity, let us compute the score of Turkey on indicator 2.05 on the
quality of air transport infrastructure.
Turkey’s score was 4.71 in 2008 and 5.33 in 2009. The weighting scheme described above indicates
how the two scores are combined. In Turkey, the size of the sample was 77 in 2008 and 96 in 2009. Using 
= 0.6 and applying formulas (2a) and (2b) yield weights of 42.3 percent for 2008 and 57.7 percent for
2009. The final country score for this question is given by formula (1):
0.423⫻ 4.71 ⫹ 0.577⫻ 5.33 ⫽ 5.07 .


56

2009
c
2008
⫹ c2009
c

2008

2009

This is the final score used in the computation GCI. Although numbers were rounded to two decimal
places in this example, exact figures are used in the actual calculation.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

(4)

7 The results are the scores obtained by each country in the various
questions of the Survey. The two terms are used interchangeably
throughout the text.
8 The completion rate is the proportion of unanswered questions
among the 120 core questions in the survey instrument.
9 In a few cases, the respondent has not answered the question
relative to their company’s activity. In order to include the surveys
with missing sector information in the country averages, the average response values for the surveys without sector information
are apportioned to the other sectors according to the sample
sizes in those other sectors. This has the effect of including these
surveys on a one-for-one basis as they occur in the sample—that
is, with no adjustment for sector.

1.2: The Executive Opinion Survey

Second, it increases the amount of available information
by providing a larger sample size. Additionally, because
the Survey is carried out during the first quarter of the
year, the average of the responses in the first quarter of
2008 and first quarter 2009 better aligns the Survey data
with many of the hard data indicators, which typically
are year-average data.
Practically, to calculate the moving average, a
weighting scheme is used composed of two overlapping
elements. On one hand, we want to give each response
an equal weight and, therefore, place more weight on
the year with the larger sample size. At the same time,
we would like to give more weight to the most recent
responses because they contain more updated information.That is, we also “discount the past.” Box 3 details
the methodology and provides a clarifying example.

10 For details about the 2008 dataset of the Survey, please refer to
Browne et al. 2008.

Reference
Browne, C., R. Bryden, M. Delgado, and T. Geiger. 2008. “Executive
Opinion Survey: Capturing the Voice of the Business
Community.” The Global Competitiveness Report 2008–2009.
Geneva: World Economic Forum. 67–77.

Conclusion
Despite all the challenges associated with conducting a
survey in 133 countries, the World Economic Forum collected over 13,000 responses from high-level executives.
This makes the Executive Opinion Survey data unique
as a portrayal of the opinion of business leaders concerning the many factors that contribute to shaping up the
competitive landscape of a nation.The Survey is by far
the largest poll of its kind; a scale which would not be
possible without the incredible work carried out by the
Forum’s network of over 150 Partner Institutes. Going
forward, sampling and comparability across the globe for
a more robust dataset will remain the major aims of the
Forum.

Notes
1 Data were collected for the Islamic Republic of Iran, but—in
keeping with our moving average methodology—one more year
of Survey data will be collected in 2010 in order to include the
country in the rankings of The Global Competitiveness Report
next year.
2 The World Economic Forum’s Global Competitiveness Network
would like to acknowledge e-Rewards Market Research for carrying out the Executive Opinion Survey 2009 in the United States,
collecting over 400 surveys following the detailed sampling guidelines.
3 Special appreciation is extended to Richard Bryden, Director of
Information Products, Institute for Strategy and Competitiveness,
Harvard Business School and Mercedes Delgado, Assistant
Professor, Fox School of Business, Temple University and
Member, Institute for Strategy and Competitiveness, Harvard
Business School for their invaluable input into the Survey
sampling methodology and Survey design.
4 The Survey sampling guidelines each year emphasize the need
to have a sample with a sufficient presence of large companies.
5 Company size is defined as the number of employees of the firm
in the country of the Survey respondent. The company size value
used for delineating the large and small company sample frames
varies across countries. The size value tracks closely with the
overall size of the economy. Adjustments were made to the value
based on searches in company directories and data gathered
through the administration of the Survey in past years.
6 In order to reach the required number of surveys in each country
(80 for most economies and 300 for the BRIC countries and the
US), a Partner Institute uses the response rate from previous years.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

57

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

Part 2 Data Presentation The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

2.1 Country/Economy Profiles The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

...... Note that no data are available for Puerto Rico.......4 Tax rates ...0...............................106 ..........................93 .............66 ..104 ..........5 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Page 1 Global Competitiveness Index Rank (out of 133) Key indicators Stage of development Score (1–7) GCI 2009–2010.90 ...............................................6 GCI 2007–2008 (out of 131)......................... 2008 .........9 7th pillar: Labor market efficiency ...... Note: From a list of 15 factors.......4...................3....................12.....4 12th pillar: Innovation...........4 Access to financing ..........................................3........................4 8th pillar: Financial market sophistication............................3 0 5 10 15 20 25 30 Percent of responses • The chart on the upper right-hand side displays the evolution of GDP per capita adjusted for purchasing power parity (PPP)......0 GDP per capita (US$).......................The results were then tabulated and weighted according to the ranking assigned by respondents............90 .................... The most problematic factors for doing business This chart summarizes those factors seen by business executives as the most problematic for doing business in their economy............................ 2008.............................................89 ........5..........073...............1 of this Report............4.......How to Read the Country/Economy Profiles How to Read the Country/Economy Profiles The Country Profiles section presents a two-page profile for each of the 133 economies covered by The Global Competitiveness Report 2009–2010......9 Inadequate supply of infrastructure ..........................8 3rd pillar: Macroeconomic stability.....The black line plots the aggregate performance of the group of economies to which the economy under review belongs....................................11.........11........The first column shows the country’s ranks among the 133 economies.........The information is drawn from the 2009 edition of the World Economic Forum’s Executive Opinion Survey...................6.....65 .... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5................................109 ..... Global Competitiveness Index This section details the country’s performance on the various components of the Global Competitiveness Index (GCI).8 Restrictive labor regulations ...........0........................2....5 Poor public health ..........000 3.96 ....95 ................3................ 2008 ........................................ Transition 1–2 1 GCI 2008–2009 (out of 134).......8 Inefficient government bureaucracy....................87 ...........3...000 6.....4.................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum ........... From a list of 15 factors... 1980–2008 Population (millions).................... Albania Key indicators GDP (PPP int'l $) per capita... 2008..........5 Government instability/coups .....................4..9 11th pillar: Business sophistication..6....6 6th pillar: Goods market efficiency......................................6 2nd pillar: Infrastructure..... The bars in the figure show the responses weighted according to their rankings..........2.9 9th pillar: Technological readiness. which divides the world into six regions (“East Asia and the Pacific.....10..... while the second column presents the scores........................0 1st pillar: Institutions ...90 .3.........3.........................2...............4 Tax regulations ..We draw on the World Bank’s classification of economies.....2 4th pillar: Health and primary education ...1......................6 5th pillar: Higher education and training ............................... from 1980 through 2008 (or the period for which data are available) for the economy under review (blue line).............................5 Factor driven Basic requirements.......... respondents were asked to select the five most problematic and to rank those from 1 (most problematic) to 5...............2.......000 Albania Europe and Central Asia 9....126 .................. On the right-hand side............................................. For more information on the methodology and results of the GCI.......9 GDP (PPP) as share (%) of world total............5 Inflation ...............121 .....................................8 Inadequately educated workforce...............3........97 ............ In some cases.....13...................................1...0...............................9 Foreign currency regulations................. a different comparator than the economy’s corresponding group is used....3....03 12....4 Financial market sophistication Goods market efficiency Labor market efficiency Albania Efficiency-driven economies The most problematic factors for doing business Corruption.4... Policy instability.......................7 Poor work ethic in national labor force .......10...........................3 63 Crime and theft .........................”“South Asia.. a chart shows the country’s performance in the 12 pillars of the GCI (blue line) measured against the average scores across all the countries in the same stage of development (black line)................” “Latin America and the Caribbean................3................7.............” “Europe and Central Asia.................” and “Sub-Saharan Africa”) and two income groups (“high-income OECD” and “other high income”)......108 ...............................8 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .The source for these figures is the April 2009 edition of the IMF’s World Economic Outlook..............2 GDP (US$ billions)........9......3.................8 • Macroeconomic data come from the April 2009 edition of the International Monetary Fund (IMF)’s World Economic Outlook...7 The first section presents a selection of key indicators: • Population figures come from the United Nations Population Fund (UNFPA)’s State of World Population 2008 and the Economist Intelligence Unit’s CountryData Database...................3.. please refer to Chapter 1.....................109 ... GDP aggregates (available only through 2007) are from the World Bank’s World Development Indicators Online Database (data retrieved in August 2009).........................3.........” “Middle East and North Africa......2 10th pillar: Market size..........

....05 Government debt*..................■ Degree of customer orientation ...■ Availability of scientists and engineers ..........................■ Gov’t procurement of advanced tech products ..17 1... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum ..63 .■ 3.........■ Quality of the educational system ..............117 ..........01 1...........94 .......■ 7th pillar: Labor market efficiency 7.....................07 4...47 .99 ......115 .......106 ...09 4...........12 1............■ Mobile telephone subscriptions*...7 per 100 population...........................................10 1..............................91 ..■ Wastefulness of government spending..10 6..02 1............■ Control of international distribution ......■ Extent of market dominance ....■ Prevalence of trade barriers..................05 5............................................07 Capacity for innovation ..........05 4.. any individual variables ranked higher than 51 are considered to be advantages..... Any variables ranked equal to or lower than the economy’s overall rank are considered to be disadvantages...100 .......06 4..102 .......07 8........................90 .........................05 11.......105 ........................ on which it ranks 26th........04 5.....125 ...................................................06 8...............................1 ..... the following rules were applied: The Global Competitiveness Index in detail INDICATOR Property rights ......... for which United Arab Emirates ranks 81st........................■ Public trust of politicians....Any variables ranked lower than 50 are considered disadvantages..................80 ............88 .......................... For instance...................................... Indicators are organized by pillar............................■ Firm-level technology absorption......02 6.....................■ Education expenditure* .116 .........114 ........................■ Company spending on R&D ...45 ..........................98 ............14 1. For further analysis........■ Venture capital availability .....■ Telephone lines* ..63 .......03 Inflation* .................■ Reliability of police services.■ 12th pillar: Innovation * Hard data Note: For further details and explanation....■ Ethical behavior of firms .How to Read the Country/Economy Profiles Page 2 Albania The Global Competitiveness Index in detail This page presents the rank achieved by a country on each of the indicators entering the composition of the GCI...■ University-industry collaboration in R&D .......... • For those economies ranked lower than 50 in the overall GCI.■ Personal computers* ................................... ranked 75th overall............02 9.........■ Extent and effect of taxation ...04 4.....................................96 .■ Favoritism in decisions of government officials ......................■ State of cluster development .....■ Organized crime...................66 ...02 12.....................................126 .............85 ............07 7....................................................................................116 ....■ HIV prevalence*.........................................................120 ......................01 5.....■ Life expectancy*...................■ 3rd pillar: Macroeconomic stability 3.... ■ Competitive Advantage RANK/133 5..............■ Brain drain .57 .......................................101 ................................................117 ................■ 10th pillar: Market size 10.............................................................. For Vietnam..............26 ..... On the other hand........96 ................80 ............75 ......... • For those economies ranked from 11 through 50 in the overall GCI...................110 .......................■ Buyer sophistication .81 ...............77 ..133 ....18 1...............06 7...04 12...............90 ....................■ Malaria incidence* .......98 ..........................................................13 1...........................................20 .................................■ Legal rights index*....■ 3.... whereas the Number of procedures required to start a business............83 .......... In order to identify variables as advantages or disadvantages......01 8.....09 1.......................... the Data Tables in the following section of the Report provide detailed rankings and scores for all the variables of the GCI.........11 6......................01 9......................02 11.■ 11th pillar: Business sophistication 11.....................................1 for the detailed structure of the GCI.....54 ...................06 1.......■ Burden of customs procedures .....■ Laws relating to ICT........15 Intensity of local competition .■ 5th pillar: Higher education and training • For those economies ranked in the top 10 in the overall GCI.........................■ Total tax rate* ...................................03 6..........■ Extent of staff training ........................ in the case of the United States—which is ranked 2nd overall—its 3rd rank in the variable Local availability of specialized research and training services makes this variable a competitive advantage.... 36th rank) constitutes a competitive advantage....07 2.■ Strength of investor protection*.97 .........05 6......................03 12......63 .......................■ Quality of railroad infrastructure .93 ...... whereas the variable Telephone lines (which shows 32..............................................................01 2.■ Broadband Internet subscribers*..............80 ....94 ................■ Value chain breadth................■ 10.130 .....................................................■ Business impact of tuberculosis....................5 .................63 ................... variables ranked higher than the economy’s own rank are considered to be advantages....................34 .....................■ Internet access in schools ...................09 Local supplier quantity ..12 6.......■ 9th pillar: Technological readiness 9.........................■ Tertiary enrollment* .......68 ................■ Quality of roads.......................62 ... ranked 23rd overall.■ Extent of marketing ......02 National savings rate*.■ Strength of auditing and reporting standards .......101 .....................■ 3........................71 ...02 5....................74 ....■ Available seat kilometers* ............................ only the first instance is shown on this page...............03 5.■ Tuberculosis incidence*........■ Hiring and firing practices .■ Agricultural policy costs ........................■ Efficiency of legal framework in challenging regs .......................................... For indicators allocated a half-weight in the GCI.............05 2...........................01 7...07 5..........................120 ...........128 ...14 ...22 ...72 ........90 .........................06 11...........................................69 .............■ No...........06 5.................. Next to the rank....02 4.............................109 ..........06 6..03 8...........■ Business costs of crime and violence ..■ Prevalence of foreign ownership .....03 2.............04 6..■ FDI and technology transfer ...........■ Transparency of government policymaking ....40 ..........09 Financial market sophistication.....................................................04 8.......59 . of procedures required to start a business* ..■ Rigidity of employment*....32 .....■ Internet users* ..........05 9.................................■ Quality of air transport infrastructure.....■ Business costs of terrorism.......................70 ....84 ......■ Pay and productivity............76 ........■ Ease of access to loans ......................................................04 1.......................................07 11..........................105 ...............■ Regulation of securities exchanges . a colored square indicates whether the indicator constitutes an advantage (blue square) or a disadvantage (black square) for the country.■ Local supplier quality .........03 7.....................08 Availability of latest technologies................................. its rank of 11th for Quality of overall infrastructure makes this variable a competitive advantage.02 7.......................■ Soundness of banks ..............■ 4th pillar: Health and primary education 4.....01 11...........20 ..............■ Quality of primary education......................................................54 .. individual variables ranked from 1 through10 are considered to be advantages.................01 12...............08 8...................................116 .........14 6......■ Reliance on professional management ........03 1............08 4.........■ Tariff barriers* .■ Infant mortality*......16 1...........■ Willingness to delegate authority ..... Any variables ranked below 10 are considered to be disadvantages.............................................19 .....................■ Business impact of HIV/AIDS ........................■ Time required to start a business* ..................................04 Interest rate spread* .............74 ..............................................05 8.................................................................103 .....■ Firing costs* ...................■ Restriction on capital flows ..............01 Domestic market size index* .............■ Efficacy of corporate boards ....04 7...................90 .................03 9..■ Primary enrollment* ...........................................91 ..................... In the case of United Arab Emirates.......104 ............ Tertiary enrollment...06 2......... represents a competitive disadvantage......99 .....■ 64 ■ Competitive Disadvantage INDICATOR 1st pillar: Institutions 1...............05 12...........04 11...■ Burden of government regulation..■ Flexibility of wage determination.........07 1.....■ Business impact of rules on FDI .08 6.....104 ............................................70 .............15 1........■ Production process sophistication .01 4.■ Quality of scientific research institutions.116 ........■ Financing through local equity market.........................................08 7.........01 6............................07 6..■ Quality of port infrastructure ......09 Cooperation in labor-employer relations ......101 ..........92 ...08 11................................................................119 .....■ 8th pillar: Financial market sophistication 8........59 ..■ 12.................83 ........................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........1 .04 2..12 ......................................................11 1...........................................................02 2..........................09 6........■ Nature of competitive advantage .....08 1.....78 ..........06 12...■ Local availability of research and training services .............10 4................02 Foreign market size index*..■ 2nd pillar: Infrastructure 2...................■ Quality of management schools ....103 ...............■ Judicial independence ..............................................04 9...19 RANK/133 6th pillar: Goods market efficiency 6.......................119 .... constitutes a competitive disadvantage for the country......117 .......02 8..95 ....85 ...........................................56 .......................................■ Quality of math and science education .................... Please refer to the appendix of Chapter 1.95 ......87 .............01 Government surplus/deficit* ..................................■ Female participation in labor force*....06 9.....64 ..........69 ..........................■ Protection of minority shareholders’ interests .....■ Intellectual property protection..........07 9. variable Burden of government regulation constitutes a disadvantage (106th).................■ 3....■ Efficiency of legal framework in settling disputes............128 .......133 ....■ Diversion of public funds .....................118 ..........................................................13 6.....65 ....54 ....................08 Quality of overall infrastructure....................05 1.....08 Secondary enrollment* .........86 .................................................................■ Effectiveness of anti-monopoly policy .......03 4...■ Quality of electricity supply .....■ Utility patents*...03 11..............11 Business impact of malaria...89 .......05 7........

List of Countries/Economies List of Countries/Economies Country/Economy Country/Economy Page Country/Economy Albania 66 Greece 156 Oman 246 Algeria 68 Guatemala 158 Pakistan 248 Argentina 70 Guyana 160 Panama 250 Armenia 72 Honduras 162 Paraguay 252 Australia 74 Hong Kong SAR 164 Peru 254 Austria 76 Hungary 166 Philippines 256 Azerbaijan 78 Iceland 168 Poland 258 Bahrain 80 India 170 Portugal 260 Bangladesh 82 Indonesia 172 Puerto Rico 262 Barbados 84 Ireland 174 Qatar 264 Belgium 86 Israel 176 Romania 266 Benin 88 Italy 178 Russian Federation 268 Bolivia 90 Jamaica 180 Saudi Arabia 270 Bosnia and Herzegovina 92 Japan 182 Senegal 272 Botswana 94 Jordan 184 Serbia 274 Brazil 96 Kazakhstan 186 Singapore 276 98 Brunei Darussalam Page Page Kenya 188 Slovak Republic 278 Bulgaria 100 Korea. 190 Slovenia 280 Burkina Faso 102 Kuwait 192 South Africa 282 Burundi 104 Kyrgyz Republic 194 Spain 284 Cambodia 106 Latvia 196 Sri Lanka 286 Cameroon 108 Lesotho 198 Suriname 288 Canada 110 Libya 200 Sweden 290 Chad 112 Lithuania 202 Switzerland 292 Chile 114 Luxembourg 204 Syria 294 China 116 Macedonia. China 296 Colombia 118 Madagascar 208 Tajikistan 298 Costa Rica 120 Malawi 210 Tanzania 300 302 Côte d’Ivoire 122 Malaysia 212 Thailand Croatia 124 Mali 214 Timor-Leste 304 Cyprus 126 Malta 216 Trinidad and Tobago 306 Czech Republic 128 Mauritania 218 Tunisia 308 Denmark 130 Mauritius 220 Turkey 310 Dominican Republic 132 Mexico 222 Uganda 312 Ecuador 134 Mongolia 224 Ukraine 314 Egypt 136 Montenegro 226 United Arab Emirates 316 El Salvador 138 Morocco 228 United Kingdom 318 Estonia 140 Mozambique 230 United States 320 Ethiopia 142 Namibia 232 Uruguay 322 Finland 144 Nepal 234 Venezuela 324 France 146 Netherlands 236 Vietnam 326 Gambia. The 148 New Zealand 238 Zambia 328 Georgia 150 Nicaragua 240 Zimbabwe 330 Germany 152 Nigeria 242 Ghana 154 Norway 244 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 65 . FYR 206 Taiwan. Rep.

....10..................108 .......5 Inflation ..........4 12th pillar: Innovation.........2.............90 ........ 2008 ..............3.........109 ...5........................7.................................9 Foreign currency regulations.....10...65 ...............3...1................................2 10th pillar: Market size...............11...........121 .................................................5 Poor public health ...4 Tax rates ................................................... 2008......3............2...............................8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......6 2nd pillar: Infrastructure.................................................2........................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........3 Crime and theft .......................0.............66 .90 ......................4........8 Inadequately educated workforce. 1980–2008 Population (millions)..4............4 Tax regulations .............................8 Restrictive labor regulations ........126 .............3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.................................................6...............................................3...........8 3rd pillar: Macroeconomic stability.....109 ..................93 ...2...104 ..95 ........................1....5 66 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers......................3.......................3...............4 Access to financing ....9 7th pillar: Labor market efficiency .13...................................................3..............4 8th pillar: Financial market sophistication...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5......6 5th pillar: Higher education and training ..................... 2008...................89 ..........................................................3.......9 Inadequate supply of infrastructure ...................0 GDP per capita (US$)......................6 GCI 2007–2008 (out of 131)....................97 ...................................6.................0 1st pillar: Institutions .3..................4...................9 9th pillar: Technological readiness................106 .................................. The bars in the figure show the responses weighted according to their rankings....................................4...............................3.................0.................8 Inefficient government bureaucracy....................................................4 Financial market sophistication Goods market efficiency Labor market efficiency Albania Efficiency-driven economies The most problematic factors for doing business Corruption.................87 .................1: Country/Economy Profiles Albania Key indicators GDP (PPP int'l $) per capita.......4......................2 GDP (US$ billions)...............000 Albania Europe and Central Asia 9.......7 Poor work ethic in national labor force .................000 6......2.................000 3...0....90 ....12................7 Transition 1–2 1 GCI 2008–2009 (out of 134)............................ 2008 .96 .......073.......5 Government instability/coups ..3............9 GDP (PPP) as share (%) of world total...............................................................9 11th pillar: Business sophistication.................................5 Factor driven Basic requirements..........................9.........................................11............8 Policy instability.......................03 12.................6 6th pillar: Goods market efficiency...............2 4th pillar: Health and primary education ...3......

....................01 8...........................■ 10.............................■ Control of international distribution .80 ...............06 6..26 ...............................■ Firm-level technology absorption....■ Tariff barriers* .......91 ....■ Restriction on capital flows .....07 Capacity for innovation .................01 11.88 ............02 3.......54 ...■ Primary enrollment* ...........02 6...............80 .......15 Intensity of local competition ..................■ Extent of marketing ......83 ....03 1.08 7....................................1: Country/Economy Profiles Albania The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 67 ...............77 ...........06 12...........................03 12....12 1....66 ......06 2...............02 2...............89 ..........5 ............................128 ..■ Tertiary enrollment* ........■ Ethical behavior of firms ..04 5............75 .......................■ Legal rights index*.......................68 ...■ Reliance on professional management .....................................................■ Protection of minority shareholders’ interests .■ Malaria incidence* ......102 ..........63 .....76 .....................■ Personal computers* ........................125 .06 5......... of procedures required to start a business* .■ Quality of railroad infrastructure .................64 ......■ Organized crime....................................................06 11................■ Utility patents*...............■ Efficacy of corporate boards ..............19 Property rights ...............■ Quality of scientific research institutions.........■ Extent of staff training ...................■ University-industry collaboration in R&D ............■ 12...............................103 .................105 ............■ Soundness of banks ......59 .13 6........................■ Transparency of government policymaking ..........■ Infant mortality*..............07 2....04 9....07 11...14 1............■ 7th pillar: Labor market efficiency 7................■ Telephone lines* ............................02 4.■ 2.............................04 8...............................■ 10th pillar: Market size 10...■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...■ Ease of access to loans ...........■ 9th pillar: Technological readiness 9....07 8............101 .....■ Production process sophistication ...................93 ..09 Local supplier quantity ...............11 Business impact of malaria.......■ Hiring and firing practices ..............99 ...................03 8........94 ....................■ Female participation in labor force*............................74 .......■ Burden of government regulation.................133 ...03 3................109 .................06 1..........95 ...07 7..............■ Business costs of terrorism........115 .............■ 11th pillar: Business sophistication 11....■ Value chain breadth.....78 ...................................................................90 ......................................12 6...07 6...........85 ...................32 ..........■ Local availability of research and training services ......■ Prevalence of foreign ownership .90 ........110 ..........................................03 2...............■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6................05 Government surplus/deficit* ...........................99 ..........................08 Secondary enrollment* .■ Business impact of HIV/AIDS ........................120 .......62 ..............98 ......................96 ...70 .......................05 9....................■ Extent of market dominance ........................20 .....54 ............04 3.................................................................................04 7......06 8..03 4........■ Time required to start a business* ....104 .....128 ..........17 1....04 12..............................■ Quality of math and science education ...01 1.............................................■ Strength of auditing and reporting standards ..........07 5...........03 11.......■ Quality of the educational system ..........01 Domestic market size index* ........................................■ State of cluster development ..■ Wastefulness of government spending...............................01 5.....04 1......101 ...08 8.................04 4..........71 .............■ Agricultural policy costs ..........................................80 ..56 ...................106 .............................................69 .............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........11 6......................119 ...........................................................................120 .09 1.....................................■ Efficiency of legal framework in challenging regs .............■ Broadband Internet subscribers*..........126 ........03 9..........02 7..■ Business costs of crime and violence ...........................................72 ..........................09 4....................................................■ Strength of investor protection*....................09 Cooperation in labor-employer relations .....................83 .119 ......■ 4..................59 ......■ Tuberculosis incidence*........02 1...........................06 9......................1 .............05 6.■ Rigidity of employment*............95 .........................45 ........101 ...■ Local supplier quality ......03 6...10 1.■ Reliability of police services.......■ National savings rate*....................................■ Company spending on R&D .■ Life expectancy*........■ Internet users* ..........................■ Pay and productivity.........40 .......... 2....................07 4...■ Quality of roads.......................■ Extent and effect of taxation ......54 ......................................01 12........■ Laws relating to ICT.......09 Financial market sophistication..........22 ...................10 6...13 1..84 .....................................05 11.....................................02 12..........................................01 4..............63 .......■ Efficiency of legal framework in settling disputes................................05 12....08 4.............■ Available seat kilometers* ......................116 ..96 .............................■ Prevalence of trade barriers.........■ Degree of customer orientation .......■ 8.85 ......117 .......■ Diversion of public funds ...................................................08 Quality of overall infrastructure...............■ Burden of customs procedures ...............................105 ....■ Mobile telephone subscriptions*.........................................14 6...........69 .......16 1..................................■ Quality of air transport infrastructure..................■ Public trust of politicians...............07 1..63 ........................03 5............................04 6...........................................90 ..................■ Buyer sophistication ...............07 9........■ Inflation* ......117 .....................■ Brain drain .05 4....47 ...................34 .............05 5.............................................■ Quality of management schools .............................................................19 ............01 9................................................................■ Flexibility of wage determination.............■ FDI and technology transfer ..■ Government debt*...............90 ...............................................■ HIV prevalence*....■ Regulation of securities exchanges ......91 ...81 ...08 6.■ Quality of primary education.14 ..........................117 ............114 ..............63 ...............74 ........■ Willingness to delegate authority ..........■ Intellectual property protection...........■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....116 ......09 6.......................20 .■ Judicial independence .............................................■ Interest rate spread* ..........................................05 1.......97 ............■ Business impact of rules on FDI ........116 ................70 ..............11 1....................02 Foreign market size index*................98 ..............04 2......................................................■ Total tax rate* ..........18 1......................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...................116 .............04 11......05 2.....■ Firing costs* .......12 ........57 ...................■ Internet access in schools ........................10 4........02 5.86 ...........................................87 ............................■ 12th pillar: Innovation * Hard data Note: For further details and explanation......100 ...............104 ......................................................133 ............02 8.08 Availability of latest technologies.....■ Quality of electricity supply ............■ Financing through local equity market...........05 7........................1 ...01 3..................■ Gov’t procurement of advanced tech products ............■ Quality of port infrastructure ....08 11.....■ No.............................................■ Business impact of tuberculosis................................................................■ Venture capital availability .........................01 7......................08 1......■ Favoritism in decisions of government officials .....................................92 ..........■ Availability of scientists and engineers .130 .103 .....02 9..........................................06 4....02 11.........................................................................■ Effectiveness of anti-monopoly policy ...................■ Education expenditure* .65 ....................................................05 8.......................................................15 1.118 .■ Nature of competitive advantage ....................................01 2.............94 ....01 6.............06 7.03 7.

....................................................................6 Financial market sophistication Goods market efficiency Labor market efficiency Algeria Economies in transition from 1 to 2 The most problematic factors for doing business Access to financing .............2 ..............3 5th pillar: Higher education and training ........................................4...................3..2......0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ......................................3....................1 Corruption............61 .....................1............................6....2........................0..0..2 2nd pillar: Infrastructure...................... 1980–2008 Population (millions)......................................4 4th pillar: Health and primary education .......6 Restrictive labor regulations ....7............83 ................ 2008 ..................7 GCI 2007–2008 (out of 131)................3..6 10th pillar: Market size...................................................0 Inefficient government bureaucracy..................................9 3rd pillar: Macroeconomic stability................6 Crime and theft .....81 ........................................102 .............5...3 68 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......................0.. 2008.....6 Policy instability...6............................4......... The bars in the figure show the responses weighted according to their rankings..1 12th pillar: Innovation..588..................6..............................................................................2..............000 4....................126 .9 11th pillar: Business sophistication...................122 ......114 .5................................115 .............99 .........3...............................2 Poor work ethic in national labor force ........123 ..........................2........................000 Algeria Middle East and North Africa 6.000 2............................2......3..........3.4 7th pillar: Labor market efficiency ........................................9 Foreign currency regulations.........1: Country/Economy Profiles Algeria Key indicators GDP (PPP int'l $) per capita................2...159..............3.....9 Transition 1–2 1 GCI 2008–2009 (out of 134)...............117 ....................................................128 ...................... 2008 ......................4 GDP (US$ billions).........................................10.....................2 Inadequately educated workforce.....127 ........34 8...............34..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..0.........99 .........8 Inflation ....................3...3 Poor public health .............................3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ................7 GDP per capita (US$)..............................................6.........4 1st pillar: Institutions ...............................51 .................. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5................................3..8 9th pillar: Technological readiness.3 6th pillar: Goods market efficiency......77 ........5 8th pillar: Financial market sophistication...........6 Tax regulations ..................132 ....................7 Tax rates .................20.3..9 Factor driven Basic requirements.....................3 Inadequate supply of infrastructure ...........5...................................................23...........2..........................................1 Government instability/coups .....4.......2 GDP (PPP) as share (%) of world total................................... 2008...........

......126 ...■ Pay and productivity......02 8.................127 ................01 12......118 ...............11 Business impact of malaria.■ Extent of market dominance ......................■ Quality of port infrastructure ...........03 9....54 ................■ Local availability of research and training services ...The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...■ Venture capital availability ................84 ......112 .................122 ......■ Reliance on professional management .............................■ Mobile telephone subscriptions*.............................02 Foreign market size index*..................................■ Willingness to delegate authority .......■ Available seat kilometers* .......04 9...................125 .02 4.................................82 ................................................11 1....128 .............109 ...124 ..■ Internet users* .....................................03 11..........11 6.........................................■ 2.05 6..133 ...67 ..........................113 ...88 ...........................118 ..............................................................14 6.....124 ..................07 4................................................04 7..08 8...........■ Buyer sophistication ............■ Efficacy of corporate boards .........08 1..........09 6............08 Secondary enrollment* .................04 1...117 .......................■ University-industry collaboration in R&D ........■ Burden of government regulation.....■ Quality of primary education.......08 11........17 1....03 8......01 11...04 4..................83 ...............■ Quality of scientific research institutions..............■ Malaria incidence* .......................................125 ....................................................03 4.....................96 ............04 8.................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..........................................121 ........01 4.............................................■ Quality of railroad infrastructure .42 .......................06 12..........■ Tuberculosis incidence*..........07 1.06 6..........................■ 7th pillar: Labor market efficiency 7.........120 .............■ Laws relating to ICT..........................93 ..101 ..........■ Hiring and firing practices ..............................................................■ Burden of customs procedures .... 2....................................................■ Quality of math and science education ....02 6...............114 .........■ Production process sophistication ..............80 .....■ Intellectual property protection.....................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................99 ........■ 11th pillar: Business sophistication 11..............133 .118 ......09 4...................................................................■ Personal computers* ...............................................................123 ...............................■ Business costs of crime and violence ........■ Effectiveness of anti-monopoly policy ....■ Infant mortality*.................................06 2............■ Protection of minority shareholders’ interests ............. of procedures required to start a business* ...69 ...........................................................01 3.■ Favoritism in decisions of government officials .05 8....................■ Legal rights index*....................06 5.....................121 ....09 1.........■ Business impact of tuberculosis...................05 7.18 1........15 Intensity of local competition ...03 3....■ No...............................................................................................................08 4.14 1.........07 6.................................07 7..........................32 ..02 11.........111 ...............76 .........110 ............1 ...........................05 2....■ Female participation in labor force*................117 ..............■ National savings rate*.....■ Degree of customer orientation ...............■ Value chain breadth..........127 .......■ Efficiency of legal framework in settling disputes.01 2............120 ...........09 Local supplier quantity ...02 3.....■ Quality of air transport infrastructure.■ Prevalence of foreign ownership ..50 ............120 ...■ Education expenditure* ..05 11........02 7.................................91 ..................07 9....................12 6....04 2...........................................■ Organized crime.......................12 1.118 .................................02 12.1 ............111 ..............9 ............130 ........................................10 4....129 ......■ Regulation of securities exchanges ......02 9.■ State of cluster development ...............................133 ..............126 .......■ Business impact of HIV/AIDS ..........■ Flexibility of wage determination............105 .....................129 .............120 ..........................123 .■ Quality of management schools ......................................01 6.................06 9................................16 1............13 6...........01 9.............■ Government debt*......117 ......■ Restriction on capital flows ...■ Strength of investor protection*........07 Capacity for innovation .........■ Judicial independence ..............■ 12...............................■ Internet access in schools .........100 .............................................................03 6.....04 6...........100 ..........07 8....■ Extent of marketing .........................................79 .......■ Total tax rate* .....■ Quality of the educational system ..■ Life expectancy*...08 Availability of latest technologies.......116 .........03 2.....104 .......127 .......................04 5..........................................01 1.......................................64 ............................................................90 ...... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....119 ......■ Utility patents*........131 .............................■ Brain drain ...........................................28 ......................■ Extent and effect of taxation .................................03 7...................52 ......■ 8...............................................■ Transparency of government policymaking .......90 .........................06 4........98 ........................10 1....03 12..............■ FDI and technology transfer .....■ Extent of staff training ...68 ........................................■ Availability of scientists and engineers .■ Primary enrollment* .....06 7............128 ............■ Interest rate spread* ....................................■ 4........................■ Firing costs* ..........................................15 ..■ Telephone lines* ...........................125 ...................07 11....126 ......04 3.......02 1...............................................................01 8...........■ Rigidity of employment*....................■ Public trust of politicians...................02 2................133 ......■ Strength of auditing and reporting standards ......05 1.08 6...■ 12th pillar: Innovation * Hard data Note: For further details and explanation......................................................127 .........■ Broadband Internet subscribers*..............120 ........................5 ..........................■ Local supplier quality .............13 ..70 ..............................131 ......■ Firm-level technology absorption..■ Diversion of public funds .........76 ...............03 1...80 .......■ Inflation* .........■ Control of international distribution ................01 7...............................................................................05 12..1: Country/Economy Profiles Algeria The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 69 ..01 5...........■ HIV prevalence*..................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.....10 6.......■ Prevalence of trade barriers.............100 ...................07 2.....08 Quality of overall infrastructure..........■ Tariff barriers* ...55 ...........................................................119 ....128 .102 ...76 ......■ Agricultural policy costs ............■ Quality of electricity supply .128 ........................................07 5.........■ Time required to start a business* .......09 Financial market sophistication..62 ..13 1...........57 ..................05 4...74 ...........................................................................................04 11..........131 ..................93 ...............................104 ...................■ Wastefulness of government spending........■ 9th pillar: Technological readiness 9.........94 ...............09 Cooperation in labor-employer relations ...............................................01 Domestic market size index* ....123 .........■ Ethical behavior of firms .05 Government surplus/deficit* ..............■ 10.......05 9..............06 8......■ Soundness of banks .93 ..............70 .......................■ Financing through local equity market.............■ Efficiency of legal framework in challenging regs .....113 ....■ Quality of roads.............................................................15 1.........05 5....■ Business costs of terrorism.............04 12.....02 5..............■ Nature of competitive advantage .............................80 ..95 ....................115 ...03 5...........■ Ease of access to loans .......86 ..................08 7....■ 10th pillar: Market size 10....................■ Reliability of police services................■ Tertiary enrollment* ............................■ Company spending on R&D .......■ Business impact of rules on FDI .........06 1............■ Gov’t procurement of advanced tech products ..................................112 ..............06 11..........19 Property rights .....

...... 2008 .................4 9th pillar: Technological readiness......3....83 15.......0.........................4 Restrictive labor regulations .......................................................... 2008.....................20................1......3.....000 Argentina Latin America and Caribbean 12......23 .............48 .....................5 70 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..9 Factor driven Basic requirements...126 .....................................0.................. 2008.................4...................8 5th pillar: Higher education and training ..............................................................2..................55 ....................7....9 Transition 1–2 1 GCI 2008–2009 (out of 134)......4..............326..................................1: Country/Economy Profiles Argentina Key indicators GDP (PPP int'l $) per capita...............................................................4 Tax rates ............4 11th pillar: Business sophistication.........9 4th pillar: Health and primary education .............214..............2......................................85 ................................88 ....................3...................9 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....3........................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..................000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010............ The bars in the figure show the responses weighted according to their rankings...................000 6......................................................................................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........3 Poor public health ......39....................................0................................6 8th pillar: Financial market sophistication.....8.....................9 Financial market sophistication Goods market efficiency Labor market efficiency Argentina Efficiency-driven economies The most problematic factors for doing business Policy instability........116 .5 7th pillar: Labor market efficiency ...........................6.............9 GDP (US$ billions).........2 6th pillar: Goods market efficiency...........4.4.......0 Inadequately educated workforce..............9 2nd pillar: Infrastructure.....84 ...................................................5 GDP per capita (US$)..84 ...............1........6 Inefficient government bureaucracy.....9 12th pillar: Innovation.15..... 1980–2008 Population (millions).........1 Access to financing .73 ...9 Tax regulations .3...9 GCI 2007–2008 (out of 131)............................3 Crime and theft ..........................59 ..........................76 ............................9 Foreign currency regulations..........1 GDP (PPP) as share (%) of world total..................9...8..1 1st pillar: Institutions ..........................1.............123 ....................................................88 ..5....3..................17...2............ 2008 .........124 .2.....1 3rd pillar: Macroeconomic stability....................................................................................................................................0 Inflation ...68 ........3...................3.000 9...................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......7 Inadequate supply of infrastructure ........3..............85 .........5 10th pillar: Market size.0 Government instability/coups .................3.........................................000 3...........................................86 ................3 Poor work ethic in national labor force ....3...4.3................1 Corruption..............

.............................................09 1.................. 2..■ Extent of marketing ....03 9..128 ..........■ Buyer sophistication ......84 ............02 3.............84 ..................■ Quality of air transport infrastructure................................................■ Legal rights index*.......................■ Agricultural policy costs .............11 6.............■ Effectiveness of anti-monopoly policy .....04 6..........113 ....03 2........04 7........48 ...............06 6...■ Strength of auditing and reporting standards .....03 12..10 4.....................................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....■ Malaria incidence* ..........■ 12..................■ Local supplier quality ...........■ Burden of customs procedures .......................18 ...........■ Prevalence of trade barriers..04 4...............63 ....The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1............121 ...........................04 2........14 6......05 7.....107 ....■ Telephone lines* .........11 Business impact of malaria.....■ Value chain breadth....65 ...07 5.....09 6.............125 ....................................03 8...........06 8....05 4.........06 2..................................■ Business costs of crime and violence .....................■ University-industry collaboration in R&D ...57 .........................■ Extent and effect of taxation .....08 Quality of overall infrastructure.............■ State of cluster development .....................■ Ethical behavior of firms ..........41 .69 ..05 11.................01 1.........................................04 1......■ 7th pillar: Labor market efficiency 7.........125 ........13 6..............................■ 10.........02 7.................69 ......■ Broadband Internet subscribers*......................14 1.......................■ 12th pillar: Innovation * Hard data Note: For further details and explanation..............................■ Laws relating to ICT..............■ 4............................■ Strength of investor protection*......83 .....05 12..........107 ................................................64 ..................■ Favoritism in decisions of government officials .....................................121 .......01 4..........■ Total tax rate* ....■ Quality of primary education....97 .......110 ......12 1................68 .89 .............78 ...................................................................■ FDI and technology transfer ......11 1.........75 ...............■ Personal computers* ...............■ Quality of scientific research institutions................133 ..91 ................................................04 8.......02 2.......................................05 5......19 Property rights ....121 ...............03 3.......120 .........08 6...................................05 6..........117 .......56 ..............124 .....................................................................■ Life expectancy*......05 8....................................01 6....■ Quality of roads........................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...................................107 .■ Restriction on capital flows .68 ..129 .......04 3.........................................56 ......■ Internet access in schools .............127 ........................■ Degree of customer orientation ...............59 ..................................................98 .........................02 6............■ Internet users* .........■ Quality of management schools .....■ Business costs of terrorism........■ 8...15 Intensity of local competition .............81 .............................................■ Business impact of tuberculosis......................................................■ Availability of scientists and engineers ..............................■ Soundness of banks ..........................................07 11......01 7.........................130 .............126 ...06 1.................................02 1...........130 ............02 8....■ Time required to start a business* ..........................■ Business impact of rules on FDI ..■ National savings rate*...........102 .....06 12.07 1..............................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...........................06 11....................................08 8............26 ........06 9..117 ..............................................■ Rigidity of employment*.....118 ..■ 9.53 .............................01 3.......................................131 ............91 ..31 .........■ Primary enrollment* ............64 ...88 ...................71 ....■ Quality of railroad infrastructure ..................02 12......21 ................................03 4..42 ................■ Quality of math and science education ...............................■ 11th pillar: Business sophistication 11..60 .........95 .....................08 11....05 1..........112 .97 ............02 Foreign market size index*......■ Wastefulness of government spending.............................. of procedures required to start a business* ..............................■ HIV prevalence*..■ Company spending on R&D ...........................08 Availability of latest technologies........03 1..........09 4....................................■ Venture capital availability .01 8........83 ..127 .......07 7..........................................107 ...............................74 ..........83 .....................13 1..................■ Production process sophistication ...■ Control of international distribution ......01 Domestic market size index* .......128 ................■ Quality of port infrastructure.........■ Reliance on professional management ..........................................84 ..120 ................70 .................................86 ...............60 ........78 ........................................120 ......■ Inflation* ........18 1...01 2.......1: Country/Economy Profiles Argentina The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 71 ............124 .........................................................................................■ Transparency of government policymaking .04 5...06 4....................................................................113 ..................■ Firing costs* ................■ Local availability of research and training services .........90 ......................................................................■ Protection of minority shareholders’ interests ..10 1...96 ........................................112 ........................■ Firm-level technology absorption........................114 ..............................53 ..........23 .......................16 1...................................■ Prevalence of foreign ownership ...............■ 2.■ Tuberculosis incidence*...............02 11......■ Efficacy of corporate boards ......................................■ Intellectual property protection..■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..................■ Gov’t procurement of advanced tech products ....................43 ........53 .............71 ...■ Willingness to delegate authority ....................126 ...........................................■ Available seat kilometers* .......94 ............03 7.■ Efficiency of legal framework in settling disputes.................................■ Education expenditure* ..09 Cooperation in labor-employer relations ..........■ No....03 11............................04 12.............................................■ Financing through local equity market..................01 5..........■ Public trust of politicians.....83 .......39 .............■ Judicial independence .08 Secondary enrollment* ..................................................07 Capacity for innovation ...................48 ..................01 12.■ Extent of market dominance ......01 9.03 5.......■ 9th pillar: Technological readiness 10th pillar: Market size 10.......................................................................15 1........................07 9................■ Regulation of securities exchanges ....■ Female participation in labor force*...71 ........................20 ........................................10 6......■ Extent of staff training .....94 .......................85 ..............131 ..........................................09 Financial market sophistication.............■ Burden of government regulation.■ Quality of electricity supply .03 6.......................................................■ Interest rate spread* ............................59 ......■ Reliability of police services..................■ Mobile telephone subscriptions*..........02 4...80 ...■ Business impact of HIV/AIDS .■ Organized crime.■ Brain drain .■ Utility patents*..............08 1...........08 7.07 2..100 .■ Efficiency of legal framework in challenging regs ..............................05 Government surplus/deficit* ...................06 7...................................................09 Local supplier quantity .....■ Infant mortality*....................................■ Diversion of public funds ......................86 ......05 9.........■ Tariff barriers* .........................................01 11........02 5...■ Hiring and firing practices ...................................................■ Pay and productivity.29 ........................■ Government debt*..04 9..118 .....■ Flexibility of wage determination.......................45 .08 4......02 9.................................07 4...04 11...................07 6.........07 8..................................109 .................................■ Nature of competitive advantage ....128 ...130 ...................12 6............85 ...61 .....................126 ..................................................■ Ease of access to loans .........52 ......■ Tertiary enrollment* ............05 2...........94 .06 5.17 1........■ Quality of the educational system ..

........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors........ The bars in the figure show the responses weighted according to their rankings.................................2....3 Government instability/coups ..........................................000 6.......6.........3 Policy instability....116 ..03 12............6 8th pillar: Financial market sophistication...............................................7 Transition 1–2 1 GCI 2008–2009 (out of 134)...........3 12th pillar: Innovation......6 Tax regulations ...5 5th pillar: Higher education and training .............................3...0 11th pillar: Business sophistication..............................................11........................3......3......................................................97 ......8 Factor driven Basic requirements.....108 .......7 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010................................3....000 3..0 72 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.....47 ........9 10th pillar: Market size.......0 Inefficient government bureaucracy..........109 ..............................................................................2.....................1 1st pillar: Institutions .............15.....................97 .........360................5 2nd pillar: Infrastructure.............................................................................95 ..........93 ......9 Tax rates .....................................................7 7th pillar: Labor market efficiency ...4.............2....7 Foreign currency regulations....2 Poor work ethic in national labor force ....................96 .....8 4th pillar: Health and primary education ....5.......2......3..............000 Armenia Europe and Central Asia 9..........................................................1: Country/Economy Profiles Armenia Key indicators GDP (PPP int'l $) per capita..............................1.............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..............0......................... 1980–2008 Population (millions)...........2.112 ...............53 ..............0.......... 2008 ......................................................................3 Inadequately educated workforce............................3............ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ................................................................14................4..................................................0 GDP (US$ billions)................99 .....6.....8 9th pillar: Technological readiness.........17..............81 .............3..............3..3.12............................5 GDP (PPP) as share (%) of world total.3.....4.............................7 Financial market sophistication Goods market efficiency Labor market efficiency Armenia Efficiency-driven economies The most problematic factors for doing business Corruption...............0...3 Inadequate supply of infrastructure ........3....... 2008...................3....................................97 .............9 GDP per capita (US$)..3....2..........................8 Crime and theft .....5 Poor public health .....2 Access to financing .........8................................112 ....................................................5..................2 Restrictive labor regulations ..............3............................................. 2008............................ 2008 ..........97 .......105 ....6 Inflation ............7 GCI 2007–2008 (out of 131)................2 3rd pillar: Macroeconomic stability..........3............81 .....5 6th pillar: Goods market efficiency............

..............115 .....01 Domestic market size index* .....129 ....05 5............■ Ethical behavior of firms ........■ Efficiency of legal framework in challenging regs ...................................■ Control of international distribution ........123 .53 .............................89 ........................15 1...09 4.......................99 ...07 1....86 .........................07 Capacity for innovation ................■ Intellectual property protection....................■ Favoritism in decisions of government officials ............■ Quality of port infrastructure ....................03 1.........124 ...................91 ......................................104 .......66 .....01 1.......01 7.........■ Efficiency of legal framework in settling disputes......■ Mobile telephone subscriptions*...............................■ Extent and effect of taxation ................11 1....03 8.................■ University-industry collaboration in R&D ..................■ State of cluster development .......10 6...............71 .....112 ..................................119 ..■ Quality of scientific research institutions.■ 10......04 1............79 ..03 9.19 Property rights .............114 ........................122 ...............................14 6..........82 ..................36 .............................36 .................02 4..........■ Business costs of terrorism........................1: Country/Economy Profiles Armenia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 73 ...07 11........■ Prevalence of foreign ownership ..........■ Local supplier quality ......■ Production process sophistication ...■ Strength of auditing and reporting standards ...■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......■ Extent of marketing ...........................................................61 ...........................09 Local supplier quantity ..■ Quality of air transport infrastructure......122 .■ Agricultural policy costs .........1 .....................92 ...................01 5.......................125 .........................100 ............05 4.......■ Primary enrollment* ...■ Life expectancy*.....04 6.97 .....69 .............................■ Internet users* ..............113 .........04 7..............■ Efficacy of corporate boards ............................................■ Value chain breadth....04 2.........05 6...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.■ Business costs of crime and violence .....111 ..............03 2........108 ......07 4...............................................03 7...■ Flexibility of wage determination..............79 .............................................09 Financial market sophistication................75 ............■ Available seat kilometers* .........48 ..05 Government surplus/deficit* .....82 ..02 8..........................................................................02 1..06 2.....26 .....101 .......................................132 ...............57 .............04 4................■ Business impact of HIV/AIDS .............■ National savings rate*.................107 .....................■ Regulation of securities exchanges ....................124 ....41 .................................02 9..................................75 ..■ Legal rights index*.......................■ Utility patents*..........................■ Reliance on professional management .....................07 8...................05 8.08 11....................................93 ...........128 .01 8..................36 ...04 11..................................65 ...................115 ........................105 ..................118 .................................................■ Quality of the educational system ..........■ Firing costs* ...................120 .......06 9....■ Ease of access to loans ...............07 5......06 6...................................................45 ...........................06 5..............65 .........................................115 ....................07 7..85 .............................................109 ...........26 .................■ Pay and productivity...........73 ......01 3...........74 ....06 7.............08 1........125 ...............................03 4...............52 ..............■ Laws relating to ICT...........................08 6....■ 10th pillar: Market size 10....■ Hiring and firing practices .....................................83 ....52 .....05 2......■ Quality of management schools .....06 11.............................■ Buyer sophistication ........................................19 ........ of procedures required to start a business* ...............................■ Tuberculosis incidence*...........01 11..........■ Organized crime.■ Tertiary enrollment* ..........11 Business impact of malaria......................................01 9..66 ............03 11.............05 11.......82 .................12 1......................■ 11th pillar: Business sophistication 11.............104 .....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..............07 6.....05 12.........66 .....■ 8..................72 ..■ Quality of railroad infrastructure ...........125 .........01 6.......15 Intensity of local competition .02 2......■ Diversion of public funds ........117 ........................................10 1..............................04 5...............■ Time required to start a business* ...■ Protection of minority shareholders’ interests .......................■ Internet access in schools .............04 12...92 ...........................1 .................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............................■ Reliability of police services.23 ....................................................05 7..............................................06 8.■ Business impact of rules on FDI ...........■ Degree of customer orientation .78 .......................117 .■ Business impact of tuberculosis...................16 1....03 12...............■ Local availability of research and training services .....................64 ...............■ FDI and technology transfer .....05 9.....................02 7....■ Government debt*......................................................11 6...■ Burden of government regulation.......58 .03 6.....13 1.............08 Secondary enrollment* ..............■ Quality of math and science education .......107 ...■ Quality of primary education......................■ Personal computers* .........................17 1.......■ Quality of electricity supply ...............111 ...98 ...............■ Public trust of politicians......01 2...■ Tariff barriers* ............01 12..........08 4.....06 4...03 3..................05 1..............■ Infant mortality*..........03 5...............................131 ....105 .............04 9....................................................................88 .........07 2..■ Female participation in labor force*.....■ Total tax rate* ....... 2.....■ Availability of scientists and engineers ..■ HIV prevalence*...............■ 9th pillar: Technological readiness 9............................................................■ No.........81 ....112 ..............................■ Nature of competitive advantage ..................123 .............115 ..12 6..........104 .....10 4..08 7..................09 1................06 12.69 ..34 ......................■ Interest rate spread* ..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....................................■ Education expenditure* ..............................................08 8........................................■ 12.........■ Gov’t procurement of advanced tech products .......................■ Company spending on R&D ........................................02 6.......■ Extent of staff training .............14 1.......86 .......................■ Venture capital availability ...................95 .........................09 6...............................................103 ................■ Broadband Internet subscribers*........................................103 ..........................................■ Transparency of government policymaking .....................................................................118 ..................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...............■ Financing through local equity market......................19 ...........■ Telephone lines* ............................06 1......13 6...........54 ............07 9....81 ...................■ Effectiveness of anti-monopoly policy ............129 ..........................................98 ................■ Brain drain ..09 Cooperation in labor-employer relations .................................■ Extent of market dominance .02 12.................08 Quality of overall infrastructure..........................................................119 ....■ Burden of customs procedures .........■ Rigidity of employment*.112 ...04 3..........62 ...................■ Quality of roads...■ 2............................■ 7th pillar: Labor market efficiency 7....22 .........■ Wastefulness of government spending........02 Foreign market size index*..............................04 8............■ Soundness of banks .....106 ...............................................................................114 .................01 4.......■ Inflation* ...■ Firm-level technology absorption..........................■ Restriction on capital flows ......................................■ Strength of investor protection*...........02 3.75 ..............46 ........■ Judicial independence ............02 11....■ Prevalence of trade barriers....................................15 .................■ 4......■ Willingness to delegate authority ......................18 1......................................................08 Availability of latest technologies........■ Malaria incidence* ..............02 5.............

..............6.........................................................010...................0 Tax rates .......2 Corruption......................................14 ...2 Poor public health ..........8 12th pillar: Innovation........2......5....... 2008 ............. 2008.............................................9 ...................16 40.............................5 Crime and theft ......6....1 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.4 GDP (PPP) as share (%) of world total.........19 ..................................5 9th pillar: Technological readiness....5.............................3 5th pillar: Higher education and training ..6 1st pillar: Institutions ......................25 ............000 Australia OECD 30....0 Government instability/coups ...........11.........................................4. 2008 ....................4 10th pillar: Market size.......................................5.2......................8 Tax regulations ...................10...............000 10...................................0..4........5 Inadequately educated workforce..............1: Country/Economy Profiles Australia Key indicators GDP (PPP int'l $) per capita...14.............5.....2 8th pillar: Financial market sophistication.................................0 GDP (US$ billions)............1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....................19 .....................2 3rd pillar: Macroeconomic stability..................20 ....3 6th pillar: Goods market efficiency.....................21..18 ..5....2 Factor driven Basic requirements......................................11.........0 Inflation .7 Inadequate supply of infrastructure .000 20............................................................5..............................5.............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........6 11th pillar: Business sophistication............................................5....................5............................................. 2008.........18 .........................2 74 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...........6 2nd pillar: Infrastructure..........0...........................5.2 GCI 2007–2008 (out of 131)..............10............................................................................7 GDP per capita (US$).......16 ............9 Foreign currency regulations...............................15................21 .............6 4th pillar: Health and primary education .............................2..............1....... 1980–2008 Population (millions)................ The bars in the figure show the responses weighted according to their rankings.......4........2 Inefficient government bureaucracy.....1......9 .........15 ....5............................7 Poor work ethic in national labor force .5..............................8..........................................................................26 .........2 7th pillar: Labor market efficiency .................8 Access to financing ...400..........12 ..................14 ......................................9 ....0..............................5.............47..4 ..5......................1...................4 Policy instability.............4....4 Financial market sophistication Goods market efficiency Labor market efficiency Australia Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations .................................20 . The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .....................2 Transition 1–2 1 GCI 2008–2009 (out of 134)............

.......30 ...............06 5..................................................■ Primary enrollment* .......................15 Intensity of local competition ....17 ....8 ............3 .....5 ..........7 ....................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1........02 9...........■ Quality of electricity supply .................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.......42 ......■ Efficiency of legal framework in settling disputes.05 2.04 9..........■ Burden of customs procedures ...............................................■ Inflation* .............................7 .16 ...■ Quality of port infrastructure............................................■ 9th pillar: Technological readiness 10th pillar: Market size 10........................■ Legal rights index*............■ Degree of customer orientation ...............................08 8...................15 ......................55 .........42 ...................................................25 ..15 ....27 .....................................20 ..........■ Firing costs* ...........17 .......03 6.............■ Laws relating to ICT.........................04 11...........................................■ Total tax rate* .21 ..................................■ Quality of the educational system ..........01 3...................■ Tuberculosis incidence*..............................................................09 6....................■ Agricultural policy costs ......05 1...7 ...............28 ....10 ......4 .........................54 ...................18 ...........................■ Reliability of police services....34 ..................................05 Government surplus/deficit* .................................62 ....................17 ................06 12..........41 ..............11 ..........13 1..................■ Ease of access to loans ....................34 ...............■ Internet access in schools ........................12 ..........02 4..............................09 1....................04 12........■ Flexibility of wage determination..................■ State of cluster development ..................■ HIV prevalence*.....■ 12...........................05 5......07 7.■ Quality of air transport infrastructure....03 4...■ Business impact of tuberculosis..............................................5 ....................................................................■ Strength of investor protection*..25 .....11 1.......08 4.............................22 ....18 1......08 6............................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3........................■ 7th pillar: Labor market efficiency 7.............................14 6.................01 7.................................................2 ..........10 ...05 11........■ 11th pillar: Business sophistication 11........07 4.........■ Prevalence of foreign ownership ............................■ Organized crime......................................................... 2......■ Buyer sophistication .n/a Broadband Internet subscribers*.......01 11.......................05 4.......................10 ...............13 6......................................01 Domestic market size index* ...............02 11................■ 8......10 4...02 Foreign market size index*...........■ Willingness to delegate authority ..............■ Extent and effect of taxation .........01 1..........................■ Business impact of rules on FDI ........■ Protection of minority shareholders’ interests ................09 Cooperation in labor-employer relations .............1 ...........■ Time required to start a business* ..........■ Judicial independence .03 12....................■ Firm-level technology absorption......■ Burden of government regulation.......09 Financial market sophistication..02 12.................■ Nature of competitive advantage ..........■ Pay and productivity....■ University-industry collaboration in R&D ...............■ Business costs of terrorism.............02 3..............07 9..........■ Quality of math and science education ............................................90 ...............04 4.......■ Utility patents*.............................17 ..37 .........................................■ FDI and technology transfer ..................■ Quality of scientific research institutions.......■ Ethical behavior of firms .................12 6..........■ Hiring and firing practices ..03 8..02 5...........09 Local supplier quantity ...03 5......■ Extent of marketing ..........03 3......22 .......13 ................02 1...............................■ Efficacy of corporate boards .....34 ........................08 1........02 6...01 9...........................15 1.............07 8.38 .32 ........08 11..13 .........05 6............04 6......16 1..................................14 1............03 9.■ Value chain breadth............■ Diversion of public funds ...............................26 .......08 7..06 11...............07 Capacity for innovation ..............1 ................■ Business costs of crime and violence ......■ Transparency of government policymaking ....■ Internet users* ...66 ..............................17 1...10 6...........■ Restriction on capital flows ..■ 10............12 .............02 2....................07 11...............■ Venture capital availability .............■ National savings rate*....12 1..........■ Regulation of securities exchanges .....44 ....■ Personal computers* ............■ Tariff barriers* ...........................78 .■ Brain drain .................................................................12 ......................................................■ Company spending on R&D .......■ Female participation in labor force*..........................................................................37 .........■ Local supplier quality ...................■ Quality of railroad infrastructure ....................42 ..................................................07 6.....................................................................................■ Control of international distribution ..................05 8......06 4.......................................................■ Reliance on professional management ...1: Country/Economy Profiles Australia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 75 ...■ Life expectancy*.............................08 Secondary enrollment* ...19 Property rights ....89 ....................■ Malaria incidence* .............................3 .■ Wastefulness of government spending............04 7.........11 Business impact of malaria....66 ............................................................■ Strength of auditing and reporting standards ......................................21 ................................................07 1..01 2.................05 9.....11 6.......10 ..................3 ......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........................03 1.......................03 11..24 .........16 ....................09 4..........15 ..........................50 ...........................■ No........02 7.........06 9...........................37 ...............10 .13 .................■ Rigidity of employment*.....56 ...38 ..■ Gov’t procurement of advanced tech products .........■ 9................................■ Financing through local equity market.■ 4..............06 8..42 ........14 .........■ Production process sophistication ...........04 1.................■ Local availability of research and training services ........................................................................................6 ...........■ Intellectual property protection..........04 2...................23 .............■ 12th pillar: Innovation * Hard data Note: For further details and explanation........13 ............................01 12...................01 5............................■ Interest rate spread* .............21 ...02 8...................................■ Favoritism in decisions of government officials ........................................................06 6....■ Effectiveness of anti-monopoly policy .............■ 2.............................18 .........■ Tertiary enrollment* ...............................01 4.................................01 6...........................06 1......06 2..29 ................■ Available seat kilometers* .......................................................29 .................■ Availability of scientists and engineers ......................................14 ..............07 2......18 ..........26 ......■ Extent of market dominance .96 ...■ Quality of management schools ....................16 ........■ Telephone lines* ....................5 ............................................................................■ Efficiency of legal framework in challenging regs ............■ Business impact of HIV/AIDS ......17 .47 .........................................■ Soundness of banks ...............07 5......33 ..............................03 7.....................43 ................ of procedures required to start a business* ...26 ..■ Prevalence of trade barriers..........................■ Mobile telephone subscriptions*..............................12 ....................04 8..12 ...................28 ......05 7.......................04 5......■ Quality of primary education.......10 1......■ Government debt*...48 ...........................14 ...........................11 ...■ Quality of roads.........................05 12.........................■ Public trust of politicians.......47 ...........7 ......6 ............03 2..............18 ........■ Education expenditure* ......08 Quality of overall infrastructure......■ Infant mortality*........................1 ....06 7.......................13 ............04 3..........■ Extent of staff training .........84 ..01 8...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...............................24 ......20 .38 .......30 .............3 .................08 Availability of latest technologies..

.......................................19 ...........11 ...............7.........................5 Inadequately educated workforce.......0 5th pillar: Higher education and training ................18 ....14 .....5.......2 Factor driven Basic requirements....................14 .............34 ........4..........0..415............ The bars in the figure show the responses weighted according to their rankings..1.......8 Access to financing .........................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.....5..................6 Foreign currency regulations.............................................3 GDP per capita (US$)..................................8 Poor work ethic in national labor force .....1 Crime and theft ...5..................................5.....14..........3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......................................................................................6.................................19.4......................................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .....................11...1........2 6th pillar: Goods market efficiency.... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5....................7 1st pillar: Institutions ......7 ...........................................11 .......5 Financial market sophistication Goods market efficiency Labor market efficiency Austria Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ....5...13 ....0................................................................................9 3rd pillar: Macroeconomic stability.............2..................5..000 10..........................13......................................... 2008........000 20........................4 GDP (PPP) as share (%) of world total..48 40..................................................9 ............6 Policy instability.............................................7 8th pillar: Financial market sophistication..2......................... 2008...........................................................2 GCI 2007–2008 (out of 131).................1 76 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.....................2...........................................6 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................5..........000 Austria OECD 30....5.........................................6 2nd pillar: Infrastructure.....1: Country/Economy Profiles Austria Key indicators GDP (PPP int'l $) per capita...3 Inefficient government bureaucracy..............17 ........3 Government instability/coups .....1 7th pillar: Labor market efficiency ...0...........................1 Transition 1–2 1 GCI 2008–2009 (out of 134)...0..............098..............................9 Inadequate supply of infrastructure .15 ...................17 ....................6 Tax rates ..........2 4th pillar: Health and primary education .........27 .........................2 Inflation ..5...........7.5..........................4 10th pillar: Market size...........................19 .7 Tax regulations ..........8........19 ..............................50........5..................... 1980–2008 Population (millions)..................... 2008 .......33 ..............8 9th pillar: Technological readiness............3............0 11th pillar: Business sophistication...4....................5 Poor public health ...8 Corruption.....................................5. 2008 .........37 ...............5................5 12th pillar: Innovation.........4 GDP (US$ billions).......12...................................................4.

............6 .... of procedures required to start a business* ..01 4..........................................................■ 11th pillar: Business sophistication 11....................12 ...............................07 4...................■ Personal computers* ................................18 ..........................6 .■ Venture capital availability .......08 1.....04 1....04 12........................................................................28 ............03 6...................................10 ...................07 7......■ Internet users* ...............................................06 2...■ Quality of roads.....................18 .05 9......................................11 1........100 ...............76 ....................................................01 6............................................41 ............09 Cooperation in labor-employer relations ....5 ......01 3...............■ Nature of competitive advantage ............................44 ..............■ Business costs of terrorism......................■ Quality of the educational system ..................■ Judicial independence ..........■ Soundness of banks .01 Domestic market size index* ......05 8.................■ Local supplier quality ...............09 6.09 Financial market sophistication...■ Gov’t procurement of advanced tech products ......■ Government debt*.....10 4.......................................................................■ Organized crime........................................................17 ................................■ Education expenditure* .06 7...■ Diversion of public funds ................■ Laws relating to ICT.....................02 6....................................■ Production process sophistication .......3 .......06 8...■ Inflation* .■ University-industry collaboration in R&D ......02 Foreign market size index*.....15 ........■ Business impact of tuberculosis..........................30 ..........................12 ..24 .......■ Quality of air transport infrastructure...........9 ............04 6.......03 7..............1 .............................................................................................22 ...............■ Firing costs* ...........13 ............02 1..■ Regulation of securities exchanges ..................19 .....07 5...................05 7................02 5..........26 ....■ Transparency of government policymaking ................■ Legal rights index*..31 ....27 .................06 11..............■ Hiring and firing practices ...■ Strength of auditing and reporting standards .........■ Broadband Internet subscribers*.....37 .......10 6.................................................■ 4..........08 4.........................................■ 9th pillar: Technological readiness 10th pillar: Market size 10....■ Flexibility of wage determination..11 ...01 11.■ Prevalence of trade barriers....04 3..............................14 .....................................01 9...............03 12.................11 .......................04 5............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5......■ Life expectancy*.03 3..........■ 7th pillar: Labor market efficiency 7...............06 12........24 ................19 Property rights ........02 11............................................40 ...........................................04 2...........45 ..............................................................08 7.................15 ...............2 ...............................39 .......24 ......15 Intensity of local competition .......09 Local supplier quantity ....■ Interest rate spread* ............................54 ...■ Efficiency of legal framework in settling disputes.............................■ Strength of investor protection*......■ Wastefulness of government spending..........5 ..15 1......................25 ...................■ Brain drain .................................11 6......07 11.....60 ......111 ..03 9............■ Burden of government regulation.................21 ..03 8.................16 1................12 ..........02 4...............................■ Business costs of crime and violence ......................04 11....5 .....■ Primary enrollment* ............■ Protection of minority shareholders’ interests ............................................10 ..41 ......■ Tariff barriers* ..■ Burden of customs procedures ..31 .19 ................05 1......................6 .......■ Quality of electricity supply .................■ Mobile telephone subscriptions*......■ Available seat kilometers* .....................................08 Availability of latest technologies......05 4..36 ............................03 2.....................................................4 ............01 12..............................................................34 .....................■ Control of international distribution ......12 .............■ Buyer sophistication ......■ Quality of railroad infrastructure ...............61 ..................■ Firm-level technology absorption...07 6.................................................................■ Effectiveness of anti-monopoly policy ....12 1..................................■ Ease of access to loans ......................................■ Quality of primary education...........99 ..................................13 .....01 8............ 2.................1 ...................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................24 .18 ..5 ................28 .........01 2....................■ 10.......13 6...............10 .02 7..9 ...................■ Prevalence of foreign ownership ........■ Efficacy of corporate boards ...................................08 8............18 1.......03 5..■ Quality of management schools ...........................6 .......................■ Extent of market dominance ........................22 .100 .....25 ................................06 6......03 1...■ Agricultural policy costs .15 .........................04 8................8 ...■ Total tax rate* ..................................07 8...........................05 2...........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............24 ...........................■ 9.............08 11......24 ...............■ Ethical behavior of firms ......................■ Tertiary enrollment* .......02 9....39 .02 8............6 .......................■ Time required to start a business* ......................13 1......................06 1............................07 1................■ Quality of port infrastructure.....................................10 1.....................■ Intellectual property protection........................................■ Public trust of politicians......................■ 12th pillar: Innovation * Hard data Note: For further details and explanation...............................07 2...08 Secondary enrollment* .....................23 .....................06 5...............■ Female participation in labor force*..........133 ..02 3...09 1.....04 7....................■ HIV prevalence*...........12 .........................02 12........................................................■ Extent of marketing .................................................05 6................09 4.........13 ....................24 ..............16 ........01 1.......■ Financing through local equity market...................11 ..........■ Company spending on R&D ...........■ No.......■ Local availability of research and training services ..............■ Favoritism in decisions of government officials .............55 ..............04 9.....01 5............03 11.................................■ Internet access in schools .............■ Infant mortality*.7 ...28 ...............................■ Rigidity of employment*..■ Efficiency of legal framework in challenging regs ..........................13 .........12 6......05 11....■ Reliance on professional management ...■ Telephone lines* ....■ 12...06 9.............06 4...............1: Country/Economy Profiles Austria The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 77 .07 Capacity for innovation ......................67 .........................■ Willingness to delegate authority ...17 1................17 ...........................48 .........13 .........03 4......04 4............■ National savings rate*........■ Restriction on capital flows .............05 Government surplus/deficit* ..■ Degree of customer orientation .■ Value chain breadth..■ Business impact of HIV/AIDS ..............................................................53 .............4 .......................■ Quality of scientific research institutions.........■ 8.........................■ Availability of scientists and engineers ............15 ........................1 ......................34 .............08 Quality of overall infrastructure...............................................05 12....08 6..........■ Extent of staff training .........................■ State of cluster development ..15 .1 ................................................7 ......................46 ..■ Tuberculosis incidence*...................20 .■ 2nd pillar: Infrastructure 2......................................01 7....................■ FDI and technology transfer ...69 ................19 ...05 5.5 .........................02 2.........................38 ......................11 Business impact of malaria.............■ 3rd pillar: Macroeconomic stability 3....31 ..........■ Reliability of police services.........■ Utility patents*...................................■ Quality of math and science education ..............■ Pay and productivity.....14 6.............................6 .................78 ...17 ................18 .■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........■ Extent and effect of taxation .....■ Business impact of rules on FDI ...................................................30 .............14 1.................................■ Malaria incidence* .......07 9.......................12 .................................

...................1......19...........0 Foreign currency regulations.................................6 1st pillar: Institutions .............................3......000 3...5 Inefficient government bureaucracy.......7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....1 Government instability/coups ....4 GDP (PPP) as share (%) of world total..74 ..........51 .........1...................................4......................66 .....................0 5th pillar: Higher education and training ......4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ................1 Policy instability.............1 Factor driven Basic requirements.....3.....................8... 2008 .......8........11 12...58 .1: Country/Economy Profiles Azerbaijan Key indicators GDP (PPP int'l $) per capita.................13 ....................5 Financial market sophistication Goods market efficiency Labor market efficiency Azerbaijan Economies in transition from 1 to 2 The most problematic factors for doing business Corruption.............000 6.....4 GDP per capita (US$).5.........................8..................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010........ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.......4.......7...........................71 ..............................72 ...............................2...1 2nd pillar: Infrastructure..............4.....5 GDP (US$ billions).........4............................ 2008....1 Poor work ethic in national labor force ................................5 Inflation .................. 2008............................0...................................................................................9 6th pillar: Goods market efficiency......2 Tax rates .........................................4 10th pillar: Market size........7 11th pillar: Business sophistication..1 8th pillar: Financial market sophistication..................69 .....3 Transition 1–2 1 GCI 2008–2009 (out of 134)...............3..1 Crime and theft .........0 3rd pillar: Macroeconomic stability................349...................................................3 Access to financing .............................4..............75 ..............................................................8 Restrictive labor regulations ........1 GCI 2007–2008 (out of 131).........................................2....................................9 12th pillar: Innovation................ 1980–2008 Population (millions)..........3............71 ....2.................4......................................4...............3.............46....27 ...........10............3.......5...........................6 Inadequately educated workforce.....................3......9......................9..... The bars in the figure show the responses weighted according to their rankings...........................0 Poor public health ......2 9th pillar: Technological readiness.........................2 7th pillar: Labor market efficiency ................................. 2008 ...........000 Azerbaijan Europe and Central Asia 9......96 ........................2 Inadequate supply of infrastructure ................................3 4th pillar: Health and primary education ....................56 ..........................................................50 ........................8..............4......0 78 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.5...........................42 ..........................8....78 ...................................................................4....66 ......55 .................................0.8 Tax regulations ............................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...................5......

............02 8..................................■ Quality of scientific research institutions........■ Quality of primary education....16 1.............■ Brain drain ...................75 .■ Quality of port infrastructure.....14 6.............................................91 .......................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3............03 5..............................................................02 11......................................04 4.1 ............79 ....................................■ National savings rate*..70 ...........■ Soundness of banks .....■ Willingness to delegate authority ......38 ....08 4.........86 ..........■ Prevalence of foreign ownership ....■ Company spending on R&D .........■ Telephone lines* ........54 ...........■ Venture capital availability ....................................................05 6..........■ 9.....03 12.....07 9.................................84 ...................................96 .............................................................07 6........................42 ..................................02 3..................48 ........95 ..................................64 ...............■ 2......4 .........■ Quality of roads...........................................................01 7................■ Reliance on professional management ...62 ...........106 ............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..............31 .■ Control of international distribution .........111 .....63 ...........................................102 .04 1...01 2....................76 ............................■ Malaria incidence* ..■ Business impact of tuberculosis.■ 11th pillar: Business sophistication 11......65 ....................................................■ Strength of investor protection*.■ Extent of marketing ..01 12.................■ Organized crime.......05 2..............................■ Buyer sophistication ...29 ......................113 ...■ 10......................89 ....................................................................■ Tariff barriers* ..44 .......................12 6.........■ Effectiveness of anti-monopoly policy ......■ Internet access in schools ....................................................■ Life expectancy*.............................63 ....■ Efficacy of corporate boards .................08 8...........35 ...39 .....................02 1...............85 ...........■ University-industry collaboration in R&D .......15 1.......13 6.................................................6 ...01 5.............04 12.....................05 8.........04 11.............■ Female participation in labor force*.........■ Efficiency of legal framework in challenging regs ......80 ..........45 .......■ Personal computers* ....................42 ........■ Nature of competitive advantage ............49 ..................................105 ..................................................■ Intellectual property protection.........04 2....10 1..■ Broadband Internet subscribers*.......................36 ............08 Quality of overall infrastructure...................07 4...■ Quality of electricity supply .................................36 ...............01 8.05 5........■ Internet users* .01 6...............................................14 1.......01 1..........03 2..................■ Available seat kilometers* ...........03 3............51 .....53 ...........08 11...11 6...61 ..........02 5........08 Availability of latest technologies..■ Regulation of securities exchanges ........................80 .............60 ...............14 ....58 ...........................................■ Government debt*.........................................88 .50 .■ No....■ Tuberculosis incidence*...................................................................................................92 ..03 1..............10 4.........................05 9.......■ FDI and technology transfer ............09 Financial market sophistication.......01 3......................03 9....................109 ............32 .................................72 ........................................................■ Tertiary enrollment* .........02 Foreign market size index*......................37 ...........63 .■ Business costs of crime and violence .................15 Intensity of local competition ............................■ Mobile telephone subscriptions*............02 2.......82 ..................■ Business impact of HIV/AIDS ...................................................02 7......................■ Efficiency of legal framework in settling disputes..........■ 8....51 ........70 ..........83 .04 7.............................51 ...■ Quality of air transport infrastructure.................02 9...................80 ...........70 ...05 1.............06 4........06 5....................................■ Burden of government regulation.........................05 Government surplus/deficit* ..........06 2..............03 11.......................................................................■ Diversion of public funds .11 ........42 ........................■ Business costs of terrorism...............■ Prevalence of trade barriers.....09 Local supplier quantity .........■ Reliability of police services.............58 .......................10 6.........07 1.............................■ 12...■ Availability of scientists and engineers .........■ Local supplier quality .......................■ Primary enrollment* ..................................■ Legal rights index*...■ Total tax rate* .........06 6......■ Financing through local equity market...■ Strength of auditing and reporting standards ....................................07 5........ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................47 .............. of procedures required to start a business* ...............12 ............................................31 .......................07 11.......■ Time required to start a business* .........■ Production process sophistication ........75 ...............08 Secondary enrollment* .........................41 .........02 12.............................................18 ...■ 4....................■ Quality of math and science education ..■ Agricultural policy costs ............■ Quality of railroad infrastructure ......................07 Capacity for innovation ....................30 .................74 .........01 Domestic market size index* ...17 1...44 .............■ Laws relating to ICT............................61 ...1: Country/Economy Profiles Azerbaijan The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 79 .04 8......................89 ..11 Business impact of malaria.........■ Burden of customs procedures ........................................06 12......19 Property rights ...........■ State of cluster development ......................■ HIV prevalence*.......................■ Degree of customer orientation ..■ Extent and effect of taxation .............■ Rigidity of employment*..........■ Interest rate spread* ........................................■ Ease of access to loans ..................18 1...................................................................09 4.....■ Education expenditure* ....■ Quality of management schools ..............17 ..........................97 ...■ Inflation* ..■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...55 .............................18 ......05 4...........................■ Business impact of rules on FDI ...................■ Judicial independence ..42 ...............03 6........■ 9th pillar: Technological readiness 10th pillar: Market size 10....■ Wastefulness of government spending.............■ Flexibility of wage determination...01 11..............04 3..■ Value chain breadth...................................................................■ Hiring and firing practices .................................116 .56 .....■ Restriction on capital flows ...............81 ....The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1....04 6..........02 6......................■ Ethical behavior of firms ...........01 9............06 7....................06 11.......................................■ Favoritism in decisions of government officials .............■ Pay and productivity......................................95 ..03 8....65 ....07 2.........................02 4....16 ...09 6.........60 ...................12 1.....................................03 4..26 ......................64 ......93 .55 ........13 1.....86 ..........05 12..........................................05 7....112 ...............■ Protection of minority shareholders’ interests ...........................■ Firing costs* ..■ Local availability of research and training services ..........................42 ..54 ..59 .■ Utility patents*............72 .........97 .......................04 5..............09 Cooperation in labor-employer relations .......■ 12th pillar: Innovation * Hard data Note: For further details and explanation.....■ Transparency of government policymaking .........■ Quality of the educational system ..............................86 ...........................................................................................................63 ........■ Extent of staff training .08 1.................................■ Public trust of politicians......■ Gov’t procurement of advanced tech products ...................01 4.....85 .......08 7..........................................05 11....................................04 9..............08 6....■ 7th pillar: Labor market efficiency 7.................... 2..........56 ....11 1........................................89 .........03 7................06 9.......................90 .................123 ...................................06 1.09 1.62 ....................................................33 ......................07 8..■ Firm-level technology absorption.........................07 7........■ Infant mortality*.....■ Extent of market dominance .......64 ..77 ................06 8........117 ..

.............61 .......................4............................................2 Financial market sophistication Goods market efficiency Labor market efficiency Bahrain Economies in transition from 2 to 3 The most problematic factors for doing business Restrictive labor regulations ....5 ...........................................................27 ......3 Government instability/coups .22.......... 2008 .........000 20.......................................5...........4 5th pillar: Higher education and training .......43 .... 1980–2008 Population (millions).... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...........................6 10th pillar: Market size................0......................30 ............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......3 Tax rates ..............4 Factor driven Basic requirements.......4.....4........................................................0 Crime and theft .................. 2008.........7 11th pillar: Business sophistication..................................6......0........................................................................................................................8 Tax regulations ........8 Inflation ...... The bars in the figure show the responses weighted according to their rankings............35 .9 Inefficient government bureaucracy............................4.....0 Policy instability..............................3............................8 GDP (PPP) as share (%) of world total................44 .0 3rd pillar: Macroeconomic stability..8 Poor public health .............0.............................000 10......................4..........................60 ....................3 Access to financing ....2.......................................6......................1: Country/Economy Profiles Bahrain Key indicators GDP (PPP int'l $) per capita........................................................4..........................................60 ..9..........................................................................9 2nd pillar: Infrastructure..27........................8 80 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers................8 GDP (US$ billions)..........8 9th pillar: Technological readiness...6 GCI 2007–2008 (out of 131)..000 Bahrain Middle East and North Africa 30.....................................5..4............................15...............0.....4..........2 12th pillar: Innovation...... 2008.......0 Poor work ethic in national labor force .........2 GDP per capita (US$)...............35 ..........0 7th pillar: Labor market efficiency ..............3 Inadequate supply of infrastructure ..38 .0...0.....0 4th pillar: Health and primary education ....................... 2008 .........................14..........4 6th pillar: Goods market efficiency........................22 ..........................................30 ..0......6 Corruption...................................................0..4 1st pillar: Institutions ........4..11.......97 ....9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................................7 8th pillar: Financial market sophistication.22 .............2..........................3..5 Transition 1–2 1 GCI 2008–2009 (out of 134)........... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...21.................................................................5....7 Inadequately educated workforce.3....................48 ........37 .....247...11.................37 ...........04 40......................4.......5................................3..........................1 Foreign currency regulations...........

.....................................17 1..........................09 Financial market sophistication.......10 4..45 ....................■ Quality of primary education.42 ........123 ........46 ..................06 9.........................■ Restriction on capital flows ......31 ...........................05 2.................07 4...06 2............................04 4............................................62 .......■ Utility patents*..06 6....03 3.....................08 4...................02 11.......19 Property rights .....20 ........................25 ...............................................09 6..........................02 12..........................■ Extent and effect of taxation ...................■ Strength of auditing and reporting standards ......11 1........................................01 8.............18 .............................■ State of cluster development ......85 .......■ Tuberculosis incidence*...........................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation..02 4..........................................................87 ...■ Local availability of research and training services ........................06 8..........................................■ Intellectual property protection........................83 ......■ Control of international distribution .............03 12..............................7 ..................11 Business impact of malaria.................................01 2............................■ Broadband Internet subscribers*........15 .....03 1.....■ Interest rate spread* .......■ FDI and technology transfer ..................■ Education expenditure* .............................■ Malaria incidence* .....01 11..............................05 9.....■ Efficiency of legal framework in settling disputes................01 9...■ Extent of marketing .................■ Public trust of politicians....82 ...............................01 6.........32 ......................52 .■ Local supplier quality ....■ Efficacy of corporate boards .....................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6......■ Agricultural policy costs ........■ Effectiveness of anti-monopoly policy .36 .......................................■ Diversion of public funds .......................................................04 5..........02 6...................................33 ....■ Legal rights index*...■ Brain drain .......26 ......28 ....................■ Hiring and firing practices ........■ Judicial independence .08 6..............64 .......04 1.....■ 11th pillar: Business sophistication 11.......03 11............18 .......07 5.....................................30 .....■ University-industry collaboration in R&D ...........01 12...05 1...............67 .................................12 ....■ 8........30 ..04 3...........................03 6.........................03 2....17 .....................................................■ Efficiency of legal framework in challenging regs ............................■ 10................■ Soundness of banks .....08 11....■ Strength of investor protection*................■ Available seat kilometers* .......12 ....07 9..■ Ethical behavior of firms ...............31 ..................06 4.............19 ...........51 ....................22 ...........13 6.....■ Business costs of terrorism............■ Female participation in labor force*......................21 ..01 4..........................................■ Firm-level technology absorption...40 ............05 7.....................................06 5................02 1.......1 .59 ...........................................................45 ..................01 7..........................28 ......■ Regulation of securities exchanges ......46 ...........74 .....04 6.................■ Internet access in schools ....35 ..............60 .........02 9.............85 ...08 Availability of latest technologies...................■ Prevalence of trade barriers..06 12.................■ Government debt*.....................■ Firing costs* .05 8.....................................04 11..............71 ..........................45 .61 ..09 Local supplier quantity .......■ Tariff barriers* .■ Business costs of crime and violence ......................■ Quality of the educational system ..............42 .........■ 9th pillar: Technological readiness 10th pillar: Market size 10.................01 5..■ Availability of scientists and engineers .................................. 2.................31 .......................36 ...............................................■ Rigidity of employment*.62 ................................04 2..............................■ Wastefulness of government spending.........■ 9...........4 ...04 12.......................02 8..................06 7..........05 5..........14 6.........................01 3............................108 ............14 1.■ 12.68 ...................83 .......55 ...........................................16 ..............■ Internet users* ...07 7.54 ...........103 ...36 ......50 ......■ Transparency of government policymaking .......................08 1...........32 ....................26 ...90 ........ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................03 5...■ Reliance on professional management ...........23 ..........05 12.....18 1...........................■ Quality of electricity supply ....07 Capacity for innovation ...................■ Mobile telephone subscriptions*.........■ Venture capital availability ......4 .........■ Value chain breadth...........................23 ..........23 .......07 6..............39 .................41 ....02 Foreign market size index*....08 Secondary enrollment* .....................................70 ....1 ...05 Government surplus/deficit* .......................01 Domestic market size index* ..........112 ............................................24 ...■ Willingness to delegate authority .........26 ............5 .................................................................■ Reliability of police services.................................45 ...................13 1...............................................................................44 . of procedures required to start a business* .....■ Quality of management schools ......................05 11..09 4.............101 .................................................................................09 Cooperation in labor-employer relations ................................■ Gov’t procurement of advanced tech products ................07 1........................................■ National savings rate*.........79 ..........................................83 .....1: Country/Economy Profiles Bahrain The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 81 ..03 9.05 6..................................................■ Quality of math and science education ......51 .................■ Tertiary enrollment* ........................................■ Quality of railroad infrastructure......■ Production process sophistication ...............■ Quality of scientific research institutions...........................16 1.........■ Company spending on R&D ......■ Infant mortality*.48 .............32 ........33 ................................................11 .............15 1.■ Quality of roads...............■ Total tax rate* ......................................................10 6...02 5...........................................07 8....■ No......................................04 8............12 6.................................■ Quality of air transport infrastructure..■ HIV prevalence*...........04 7..........06 1...04 9..........■ Personal computers* .........49 ........................08 Quality of overall infrastructure........................................................■ 2........■ Degree of customer orientation ...............................................■ Flexibility of wage determination.102 .........................................43 ...12 1.................17 .■ Organized crime....07 11.......■ 4........................................15 ..........................■ Laws relating to ICT.05 4....■ Burden of customs procedures .01 1.....................02 2.....■ Financing through local equity market...............................................................12 ............................08 7...................03 4.................03 7.............09 1....................■ Business impact of HIV/AIDS ...........02 7....................55 .......03 8.......06 11.■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...■ Business impact of tuberculosis..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....................■ Telephone lines* ...........n/a Quality of port infrastructure........36 ....15 Intensity of local competition .................6 ..................................................10 1...........■ Extent of staff training ..........■ 7th pillar: Labor market efficiency 7...........................10 .......■ Time required to start a business* ..............................■ Extent of market dominance .....25 ......................14 ..17 ..........................■ Buyer sophistication ...18 ......■ Favoritism in decisions of government officials ...■ Nature of competitive advantage ..............34 .....■ Life expectancy*...................................40 ......28 .1 ...08 8...................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3........................11 6............118 ......■ Primary enrollment* ...............................58 .■ Prevalence of foreign ownership .............8 ...................■ Inflation* .....■ Burden of government regulation.....■ Ease of access to loans ........07 2....■ Protection of minority shareholders’ interests .....................■ Pay and productivity.....................................................................28 .............28 .........02 3.............■ Business impact of rules on FDI ............

..........3.................. 2008..............................111 ............................ The bars in the figure show the responses weighted according to their rankings..............84 ..............2..3..5 12th pillar: Innovation.......5 Poor public health ..........3 GDP (US$ billions).....7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....2.......0......................4 Access to financing .................. 1980–2008 Population (millions)............105 ...................................122 ......0.3...............9 GDP per capita (US$).........................15.........................129 ................16........................4 Tax rates ....2 9th pillar: Technological readiness..8 Policy instability......125 .............4........2......48 ......000 Bangladesh South Asia 2.............................................4 Inflation .................................................................10....................................3... 2008 ............4.....................................1................................71 ..0 Inefficient government bureaucracy...........3..........................2.............4 3rd pillar: Macroeconomic stability..........3.......9 8th pillar: Financial market sophistication..............................9..........1.........100 ...........................4.........126 ....3 Corruption.........................................97 ............................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............................................................4............3.107 ........................8 Poor work ethic in national labor force ..4 4th pillar: Health and primary education ............................................................3....5 GCI 2007–2008 (out of 131)....106 ............... 2008 ........................4 10th pillar: Market size.....4........114 ...1: Country/Economy Profiles Bangladesh Key indicators GDP (PPP int'l $) per capita.........6 Foreign currency regulations.....5 Financial market sophistication Goods market efficiency Labor market efficiency Bangladesh Factor-driven economies The most problematic factors for doing business Inadequate supply of infrastructure .......2...........................8 7th pillar: Labor market efficiency ..........................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.............................20.......112 ......................................33 3............1 Restrictive labor regulations ...........................6 6th pillar: Goods market efficiency.102 ......506.....161.............................3..........6 Transition 1–2 1 GCI 2008–2009 (out of 134)..................5 Factor driven Basic requirements.........................................000 1.........................7 Government instability/coups .....6 Crime and theft ..........................................1 2nd pillar: Infrastructure..............1 GDP (PPP) as share (%) of world total....1.....................................4..........................3.5......3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................................................5 82 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..........5 5th pillar: Higher education and training ........3...3 Inadequately educated workforce................2 Tax regulations .............2................0 11th pillar: Business sophistication...................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..........................................................2.122 ..........................................6 1st pillar: Institutions .....81....................108 ...... 2008........

........06 12................■ Legal rights index*....110 ................61 ...................................■ Internet access in schools .......■ Inflation* .....118 ......■ 4......■ Quality of primary education........................................■ Degree of customer orientation .................■ Burden of customs procedures ............104 ..128 .■ Strength of auditing and reporting standards ..................................■ Tariff barriers* ...............................■ Tertiary enrollment* ....■ 12th pillar: Innovation * Hard data Note: For further details and explanation....47 ............................................................................................07 8...........■ 2................■ FDI and technology transfer ....■ Interest rate spread* ....■ Tuberculosis incidence*......■ Available seat kilometers* ........04 5..........63 ................................06 5....95 .............■ Prevalence of foreign ownership ..........■ Nature of competitive advantage .125 ........................106 ......95 ...........................05 12.....................................■ Business impact of rules on FDI .........02 8.........■ Efficiency of legal framework in challenging regs ...............108 ..........119 ....104 ............................01 4....................................................97 .........■ Extent of staff training .11 1......■ 12................................101 ...........................■ Reliability of police services...■ Personal computers* ........................................130 ..........■ Business impact of HIV/AIDS ......................03 8....................■ Ease of access to loans .03 5................................................05 4...................88 .■ Mobile telephone subscriptions*.....................................................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...........117 .....................85 .........■ Quality of air transport infrastructure................■ Gov’t procurement of advanced tech products ..........04 9.........01 7....75 ..08 1...............................08 6...............................■ Rigidity of employment*.06 2.....................■ Transparency of government policymaking ..................125 ........................................■ Quality of the educational system ........09 4..........■ 8..................■ Reliance on professional management ....................119 ...................................................09 6.....■ Extent and effect of taxation ....................■ Efficacy of corporate boards ...........05 9.........09 Local supplier quantity .........132 ..................117 ....................................06 1........04 11.....................60 ....06 4.....................14 1....93 .92 ..............................................................98 .■ Quality of scientific research institutions.......■ Infant mortality*........................■ Organized crime...........■ 9th pillar: Technological readiness 9..............■ Company spending on R&D ......................08 7.................. 2..............■ Laws relating to ICT....11 Business impact of malaria..03 12....................05 11...................02 11....63 .......................................................................................03 9.........65 ..................■ Restriction on capital flows ....■ Local supplier quality ..................■ Agricultural policy costs .......................................02 4..02 7..................................128 .131 ............■ Effectiveness of anti-monopoly policy ............05 8..........■ Quality of port infrastructure .03 1..125 .33 ...........■ State of cluster development .07 6...................97 .............105 ...................................82 ..................................118 ..............................01 9.................■ Production process sophistication .........65 .................18 .......................................109 ..............■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.04 3..................■ Pay and productivity.........................08 11.01 8............100 ...............116 ........................115 ........................07 11...66 ...■ Total tax rate* ......109 .......................06 11.92 ..............................01 12.........68 ......02 Foreign market size index*..................................................................09 Cooperation in labor-employer relations .....................................................02 12......■ Utility patents*.............................07 1........104 ....131 ........■ Business costs of terrorism..................................................05 6................06 8..........................112 ................18 .04 4..............09 1................................100 .....118 .....■ Judicial independence ......18 1.....46 ...124 .........■ Firing costs* ........■ 10th pillar: Market size 10..69 ...■ Venture capital availability ..........■ Quality of management schools .........08 Secondary enrollment* ............■ Financing through local equity market............132 ...122 .......................05 Government surplus/deficit* .12 1.................■ 7th pillar: Labor market efficiency 7.............13 6.................103 ......■ Protection of minority shareholders’ interests .......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................................................04 1.............113 .......................■ Control of international distribution ..........07 2............................................112 ....122 ....128 ......60 ...............07 4..........■ Quality of math and science education ...................05 5......68 ...123 ...................................112 .....122 .......119 ......................■ Intellectual property protection...................................■ Extent of market dominance .02 9.......................................................................06 7..............................98 ...12 6.■ Government debt*....123 ..........127 ......................■ Regulation of securities exchanges .........................................08 Availability of latest technologies...■ Willingness to delegate authority ..■ Extent of marketing .........101 ...............................07 9..03 4.......74 ........46 ..08 Quality of overall infrastructure............■ Favoritism in decisions of government officials ..02 1............114 ..............01 2....■ Value chain breadth...........03 6..........■ Public trust of politicians.■ Time required to start a business* ..............■ Prevalence of trade barriers..120 ........07 5............99 ..........................94 ....17 1..............10 4......15 1.......................98 .......117 ......................90 ................................128 .............42 ..■ Education expenditure* ............04 2......■ Life expectancy*................................................■ Internet users* .07 7....13 1..........................03 7.......■ Primary enrollment* ..........................10 1.11 6...04 7................05 1........................................03 2................ of procedures required to start a business* ..118 .....15 Intensity of local competition .....05 2..............■ HIV prevalence*........................02 3.....................110 .03 11...........................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..10 6..116 ...02 2.........125 ........81 .....................................113 ....................115 ...............108 .....................110 ...................09 Financial market sophistication............90 .............108 ....128 ..................................■ Female participation in labor force*.................06 9............■ Business impact of tuberculosis................■ Burden of government regulation....■ Broadband Internet subscribers*...................................05 7...■ Wastefulness of government spending......■ Flexibility of wage determination.01 6.............................108 ....................55 ..................08 8.....03 3....................■ Ethical behavior of firms ............91 .....04 8....■ Diversion of public funds ...130 ...........25 ................................02 5........................■ Brain drain .......01 3......■ Business costs of crime and violence .89 .................■ University-industry collaboration in R&D ...........................■ 11th pillar: Business sophistication 11.....................■ No..01 1................■ Local availability of research and training services ...............................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........14 6................118 ..........................................................01 Domestic market size index* ............02 6.04 6.......................01 5..............08 4.....■ Hiring and firing practices ...................■ Malaria incidence* .................................................■ 10...........................■ Firm-level technology absorption.....................................1: Country/Economy Profiles Bangladesh The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 83 .........123 .................................................115 ...........16 1........■ Buyer sophistication .■ Quality of electricity supply .......04 12................................■ Telephone lines* .....................01 11..............107 ......................................07 Capacity for innovation ..■ Quality of roads...■ Quality of railroad infrastructure ...119 ........19 Property rights ........■ Availability of scientists and engineers .■ Efficiency of legal framework in settling disputes..■ Soundness of banks .................■ National savings rate*.....1 ...................06 6......■ Strength of investor protection*........................................................

..................3..................44 ..8..........4..........3..................................................................4 Transition 1–2 1 GCI 2008–2009 (out of 134)...2................4........................3..............1..9 Restrictive labor regulations ................................................1 5th pillar: Higher education and training ....4...17..............................................0...............8 11th pillar: Business sophistication......................4 3rd pillar: Macroeconomic stability....7 Inflation ............................0.................1 7th pillar: Labor market efficiency ......................4..................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....4 Policy instability.................................000 10........7 9th pillar: Technological readiness....60 ..............................................................50 ....126 ......58 .....................................3 84 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...............4..........3 Factor driven Basic requirements..............4...........72 ....38 .....8 4th pillar: Health and primary education ............1: Country/Economy Profiles Barbados Key indicators GDP (PPP int'l $) per capita....................................................................41 ............355..........................4.......5....................................8 Inefficient government bureaucracy......1 Crime and theft ..............8 Foreign currency regulations.48 ...................3.......47 ....................................13........................3...........3..............14. 1980–2008 Population (millions)...6.................... 2008...7 GDP per capita (US$)....................2 12th pillar: Innovation................4...................................................... 2008 ........21 ..000 5...........................6 Corruption........................................31 .6 8th pillar: Financial market sophistication.........................3...0...4.......5............................................................................................4 Financial market sophistication Goods market efficiency Labor market efficiency Barbados Economies in transition from 2 to 3 The most problematic factors for doing business Poor work ethic in national labor force ....000 Barbados Latin America and Caribbean 15............49 ............................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........................................4 10th pillar: Market size.........7...................9 GDP (PPP) as share (%) of world total..4 GCI 2007–2008 (out of 131).................3 Poor public health ..3 Inadequate supply of infrastructure ......20 ................................8 Tax rates .......47 ................7.................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .. 2008 .................................01 20....115 ........9 .........0........................5..............................26 ...13..........9 6th pillar: Goods market efficiency.............0.....4.......... 2008..............2 1st pillar: Institutions ...................4...................10............2 2nd pillar: Infrastructure..0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..5 Government instability/coups .......................3 GDP (US$ billions)...7 Access to financing .................5 Inadequately educated workforce..........................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...3........................................7 Tax regulations ............. The bars in the figure show the responses weighted according to their rankings....................

....................................07 11........................04 2........03 7.........11 Business impact of malaria......■ 7th pillar: Labor market efficiency 7..............19 .......08 Availability of latest technologies....02 3....04 3...............03 2.....08 1...........■ Quality of air transport infrastructure.......The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......112 .................................................■ Value chain breadth......76 ............07 7......04 1.....■ Burden of government regulation........■ National savings rate*.............................................■ Wastefulness of government spending......................■ Quality of roads........06 8.....07 8...........11 1......42 ......35 ......19 ................12 ..............67 .........99 ....■ Quality of electricity supply .........................24 .......04 12..................02 11..................................................17 .04 5..09 6......12 6...21 ..............24 .......................................41 .............■ Favoritism in decisions of government officials ...........63 ..■ Extent and effect of taxation ...................05 4...................................■ Tuberculosis incidence*.................................................04 6......60 ..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....15 Intensity of local competition ..........27 ..........51 ......n/a Pay and productivity.......■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3................04 4...01 Domestic market size index* ........................■ Buyer sophistication ......................■ Gov’t procurement of advanced tech products ......08 4..........................05 Government surplus/deficit* ..■ Local supplier quality .................■ 2..............09 4.........37 ....................■ Public trust of politicians........................................................01 9.........02 7..........................27 .......................03 8.....................46 .....11 6..16 ...................102 .............37 .66 ........................03 6.........03 3...................01 5....■ Rigidity of employment*.42 ..........04 9..........03 4.07 2...................■ Total tax rate*............54 ..............17 1.................................96 .............n/a Personal computers* ............01 7........................12 1..................■ Degree of customer orientation ...................121 .■ Company spending on R&D ......................42 .........■ Intellectual property protection.....■ Strength of investor protection* ...37 ....13 6...■ Internet users*..............................127 ..■ Prevalence of foreign ownership ......................................................................................■ Restriction on capital flows ....................................38 ...............■ Interest rate spread* ......62 ............................■ Extent of staff training ....■ Quality of management schools ........................................■ Mobile telephone subscriptions*....................................04 11...87 ................29 ........01 12...........13 1...........................05 12..07 1......■ Quality of scientific research institutions....■ Business costs of crime and violence .......37 ..69 ................................■ 9th pillar: Technological readiness 10th pillar: Market size 10...63 ......■ Efficiency of legal framework in settling disputes.............08 7..........01 6...................■ Laws relating to ICT......■ 4........06 11......................24 ..........09 Cooperation in labor-employer relations ........................................................................................................05 5..■ Broadband Internet subscribers*...............54 .................................................05 6..............■ Availability of scientists and engineers .............57 .125 .........9 ......................................06 9.....................01 2...104 ......07 5........01 1.■ Business impact of tuberculosis.......................................■ Education expenditure* ............................................94 ......80 .04 7..........■ Financing through local equity market......09 Local supplier quantity ........61 .....■ Business impact of HIV/AIDS .20 ..............................■ Quality of math and science education ......123 .........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.......1 ....................28 ..02 2......03 12...............................05 1... of procedures required to start a business* .........18 ............06 12................................■ Prevalence of trade barriers.15 1................................■ Internet access in schools ......................■ Government debt*................■ Reliance on professional management .............20 ..............■ Malaria incidence* ...77 ........01 4.......■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......................07 6................■ Efficiency of legal framework in challenging regs .................................02 1............■ Burden of customs procedures ...........02 4...........................53 .................................114 ......................................................■ Nature of competitive advantage ..35 ..07 Capacity for innovation ............02 12..............................................06 7...16 ..............................02 8................................................................18 1..........09 Financial market sophistication........................■ FDI and technology transfer ..1: Country/Economy Profiles Barbados The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 85 ...........................38 .............17 .................................16 .......................08 11.........................06 4.......................................■ Protection of minority shareholders’ interests ..67 .....................■ Judicial independence .■ 10................................n/a Hiring and firing practices .........................■ Firm-level technology absorption...........................34 ..27 ....................................103 .........................................................38 ...n/a 9.............28 .■ Production process sophistication .............................................1 ...n/a Agricultural policy costs .........06 2....32 ..................... 2........................■ Inflation* ....■ Tariff barriers* .01 3........67 ..............■ Extent of market dominance ....94 ......................16 ................................................................................■ Ethical behavior of firms ...1 .70 ....13 ......14 1.........................08 Secondary enrollment* ...■ 12......22 ......■ Firing costs*......19 Property rights ................08 8..............18 ................01 11.............................................■ Venture capital availability ...........73 .........05 2...................■ Available seat kilometers* ..■ Efficacy of corporate boards .........■ Willingness to delegate authority ..........16 1.............................■ Strength of auditing and reporting standards .....................12 ...............■ Life expectancy*.......■ Infant mortality*............................................03 9.................■ Utility patents*..................................55 ................■ Diversion of public funds .......■ Transparency of government policymaking ....■ 8...■ University-industry collaboration in R&D ............................01 8.......■ Organized crime..........................................................................................................■ Extent of marketing ..................................■ 11th pillar: Business sophistication 11.......■ Tertiary enrollment* .....■ Ease of access to loans .........05 9.............................n/a No................47 ......5 ........n/a Quality of port infrastructure...............................26 .......66 ......02 9................■ Reliability of police services...02 Foreign market size index*...................................■ Effectiveness of anti-monopoly policy ................02 5...........■ Telephone lines* ..................................101 .......................07 4...............■ Female participation in labor force*..........■ Regulation of securities exchanges .............n/a Time required to start a business* .........05 11..........................n/a Soundness of banks ..................64 ............05 7......■ Local availability of research and training services ...........06 1..................05 8..............09 1.......■ Flexibility of wage determination.......................■ State of cluster development ............■ Legal rights index*..87 .................................................■ Quality of primary education.....................■ Control of international distribution .............04 8. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........................08 Quality of overall infrastructure............................................■ Business costs of terrorism............25 ............46 ...............................................................77 ....07 9..35 .....■ HIV prevalence*....21 .....................68 ....45 ..16 .....03 1......08 6.....10 6........................................................................................................................20 ..........90 ...............38 ...............03 5...........14 6.17 .10 1........................................10 4........32 .....■ Business impact of rules on FDI ..........................■ Primary enrollment* ........06 5........................02 6.........■ Quality of railroad infrastructure...............................................■ Brain drain ....■ Quality of the educational system ................03 11.....06 6....

....5......................18 ..........................................13 ........................................5.....4 GDP per capita (US$)...................................................25 .....................................7........11.4.............................0.3.......24 .0 Poor public health ...............4 1st pillar: Institutions .4..........................1 Factor driven Basic requirements.........2 Corruption..............................................................1: Country/Economy Profiles Belgium Key indicators GDP (PPP int'l $) per capita..........5........ 2008 ....................4............ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.8 GDP (PPP) as share (%) of world total...............8 Policy instability.......1 Transition 1–2 1 GCI 2008–2009 (out of 134).....6.................................................................................1 GCI 2007–2008 (out of 131)..........................................0.......................6 3rd pillar: Macroeconomic stability.........5.18..... The bars in the figure show the responses weighted according to their rankings.........2 Access to financing .7 4th pillar: Health and primary education .........................................6.................................5.0 5th pillar: Higher education and training ..............................5 Crime and theft ............................................000 Belgium OECD 30....................2 Foreign currency regulations..............19 .....3 10th pillar: Market size..............................2 Inadequate supply of infrastructure ............22 .5.. 2008............................................18 ...........................................................1 Inflation .4.............0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....000 10..2 Government instability/coups ..7 8th pillar: Financial market sophistication.....................................9 9th pillar: Technological readiness.................................2..........14 .........13 ....10.......0................................................5 GDP (US$ billions)......5 6th pillar: Goods market efficiency..............3 12th pillar: Innovation..5...................1 7th pillar: Labor market efficiency ....................................0..............6 Tax rates ...................................................57 40...5....................6 Inefficient government bureaucracy..............5...... 2008...........3 .................................56 ........................................5..0 2nd pillar: Infrastructure....25 ...........................8 Inadequately educated workforce.........20 ........9...........................1 Tax regulations .............8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......................506..........5..................8 ....................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010........000 20...................4........20 .......................................107.....44 .....1....5..........16...........16............................4 86 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......................18 ... 2008 .............................5................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...0 11th pillar: Business sophistication....6 Financial market sophistication Goods market efficiency Labor market efficiency Belgium Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ..11 .......47..4 Poor work ethic in national labor force ..... 1980–2008 Population (millions)..................2...1..........................

........................43 ..........09 6.....10 4...11 .....■ Soundness of banks .04 5.....................................23 ...01 8............05 7........■ Reliability of police services..................14 .................02 12........................■ Local supplier quality ...........33 ......14 ...................................................................04 4...................................■ Brain drain ..1 .................25 .........■ Restriction on capital flows ..14 6..............■ Tariff barriers* ..............................95 ...08 8..................02 3...............06 12......09 Local supplier quantity ......■ Willingness to delegate authority .................................■ Infant mortality*......■ Efficacy of corporate boards .05 9.........■ Broadband Internet subscribers*.......15 .............19 ..............■ Extent and effect of taxation .................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......15 Intensity of local competition .■ Business impact of rules on FDI .........■ Extent of marketing .........................07 9..............02 5.............07 11...................05 12...........................54 .....................■ Legal rights index*...................................7 .........■ Judicial independence .....29 .........................■ Tuberculosis incidence*.13 6.......................................................■ Organized crime...■ Strength of investor protection*...■ Flexibility of wage determination.............123 .03 8............................................................03 3.01 3..........■ Wastefulness of government spending.......................05 Government surplus/deficit* .....................■ Local availability of research and training services ...■ National savings rate*..■ Extent of market dominance ........................................54 .................24 ....13 .............02 7.....................5 ..........2 ...■ Buyer sophistication .............15 ..............................................02 Foreign market size index*.............12 ....................■ 12.............................................................■ Public trust of politicians.............1: Country/Economy Profiles Belgium The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 87 ....■ Quality of primary education............................■ Pay and productivity............27 .........■ Quality of railroad infrastructure ....4 .....................................■ Intellectual property protection..........................07 2................13 1..............................06 5..............................■ Education expenditure* .......................................50 ...........................................24 .........................................01 4................................11 Business impact of malaria..............................16 .............07 5.............■ Quality of air transport infrastructure......................................................11 6......................■ Internet access in schools ......■ Government debt*...........24 ........................24 .....36 ......■ Financing through local equity market...01 2...........25 ................................19 ..................■ Reliance on professional management ........................■ Telephone lines* ..................■ Tertiary enrollment* ........28 ...........................■ Total tax rate* ...........................................................15 1..■ Firing costs* .8 ............■ Ethical behavior of firms .................■ 8....................................■ Venture capital availability .......03 9............12 6..............................10 ..................8 ..■ Strength of auditing and reporting standards ........................03 12........08 Secondary enrollment* .......19 Property rights ........11 .........■ Gov’t procurement of advanced tech products .......■ Company spending on R&D ................07 7...........................................■ Laws relating to ICT....................01 1.....04 12............■ Degree of customer orientation .■ Business costs of terrorism.......09 1....................................03 7...■ Diversion of public funds .■ Business impact of tuberculosis.■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.................02 4......■ Time required to start a business* ................21 .06 6......6 ...........................................03 2..................13 .........48 .......■ Burden of government regulation.......................40 ....■ 10.07 6...............................36 ......27 ......03 11...................■ Utility patents*.........■ 9th pillar: Technological readiness 10th pillar: Market size 10.....112 ...........18 .. of procedures required to start a business* ................■ Primary enrollment* ....■ Life expectancy*..............................03 5.......23 ........................................■ Quality of math and science education ..........................9 .■ Quality of electricity supply .....10 ..04 2..04 8.................................■ 4............................24 .........■ 11th pillar: Business sophistication 11..........................................................................................10 6..................09 Cooperation in labor-employer relations ...02 6..............20 .....35 ............13 ..............16 ....■ Control of international distribution ...■ Interest rate spread* ....................16 ..............06 8.......23 .........■ University-industry collaboration in R&D ..03 4.....■ Quality of the educational system ...■ Nature of competitive advantage ................................05 11.............4 .21 ...........01 Domestic market size index* ....24 ....................05 6..................07 8.......................................■ Female participation in labor force*........■ Business costs of crime and violence ..06 4..07 Capacity for innovation ................■ Production process sophistication ...............................04 7....■ Effectiveness of anti-monopoly policy ..........47 ...........................27 .......................................06 9...19 ...................16 1.......■ FDI and technology transfer ...........03 1....05 4....17 ...45 ..................................7 ...................................01 9..04 11.12 1.........................................................................27 ..■ Availability of scientists and engineers ....■ Rigidity of employment*.................................................................24 ..............56 ..04 1.......14 .22 ..............■ Prevalence of foreign ownership ..4 .........■ Quality of management schools ........20 ................■ Internet users* ......05 1...............................................10 ......................08 1.....................................■ 2............................64 ..■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..........■ State of cluster development .....01 6......................................................■ Favoritism in decisions of government officials ...............................02 9...05 8...■ Inflation* .02 1.................18 1...............................■ Efficiency of legal framework in challenging regs ..........................................■ Regulation of securities exchanges ..........08 7..........■ 7th pillar: Labor market efficiency 7...................01 7...............02 11......................■ 9.38 ..01 11...04 3.................................06 2................17 1..............06 11.......27 ...15 ............14 ...........1 ................■ Personal computers* .......................■ Malaria incidence* .08 6...............02 2..■ Business impact of HIV/AIDS ...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5................■ Available seat kilometers* ..............................................■ Hiring and firing practices .....9 .........115 ......................................■ HIV prevalence*.........130 .■ Prevalence of trade barriers...........27 .....................................06 7................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......■ Efficiency of legal framework in settling disputes..................................■ Ease of access to loans ....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.................08 Availability of latest technologies.............................................................14 ....08 Quality of overall infrastructure.30 ..............................■ No...■ Quality of port infrastructure.09 Financial market sophistication........22 ...............................36 .......19 ...............................................14 1........................................01 5.......73 ..26 .............63 .........06 1...22 ..........................05 5......................15 ...09 4.................08 4.■ Extent of staff training .■ Quality of roads........................................10 1...................■ Quality of scientific research institutions...21 .....................................26 ..04 6.26 .....................................50 .04 9............................■ Value chain breadth...................■ Agricultural policy costs ..............5 .........................................................07 4..........03 6....................................08 11............05 2..................105 .........32 .......119 ......07 1.87 ...01 12...15 ... 2...........................■ Mobile telephone subscriptions*................12 ..........11 1.......................02 8.................7 .......■ Firm-level technology absorption..17 ...................................■ Burden of customs procedures ..................................35 ...........■ Transparency of government policymaking ...................................................■ Protection of minority shareholders’ interests ...........................12 .....15 .........20 .........

........3......1.........8 7th pillar: Labor market efficiency .....................................................000 Benin Sub-Saharan Africa 1.................6 3rd pillar: Macroeconomic stability......5 Factor driven Basic requirements.9 Inflation ....................................1: Country/Economy Profiles Benin Key indicators GDP (PPP int'l $) per capita....6 Transition 1–2 1 GCI 2008–2009 (out of 134)..............114 .....20.1 88 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..........................103 ....................................................15....856.......................0 Inadequately educated workforce.79 ..................2 Tax regulations ....2.....6 GCI 2007–2008 (out of 131).......................1 11th pillar: Business sophistication.........15.............02 2............................................................................3 12th pillar: Innovation......................0........0 GDP (PPP) as share (%) of world total.....................................108 ......................5 Policy instability..............................3....2........ 1980–2008 Population (millions)..0.7 2nd pillar: Infrastructure..............2....3 Corruption.................2 Poor work ethic in national labor force ....................................3..117 ................3................................117 ..2...106 .3.........................6 Crime and theft ..................000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.....................................122 ..3 Foreign currency regulations...........4..............3................................. 2008 ...........................................89 .............................3...111 ...........................................................8......3....0 6th pillar: Goods market efficiency.......................................................................................................................500 1.................. The bars in the figure show the responses weighted according to their rankings..........115 ...............................54 .3 5th pillar: Higher education and training ...............121 ......3 GDP (US$ billions)........................103 ......................108 .........4 Government instability/coups .................................................................3....2................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .........6...... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....8 4th pillar: Health and primary education .....9 GDP per capita (US$)...........2............................8 1st pillar: Institutions ..................3............................... 2008.......................3..............5 9th pillar: Technological readiness........0...................5.......................9 Financial market sophistication Goods market efficiency Labor market efficiency Benin Factor-driven economies The most problematic factors for doing business Access to financing ......................4 Inadequate supply of infrastructure .........99 ............................6 10th pillar: Market size...........104 ....3..............................4 Poor public health .....................3..........9...........................17...........2.... 2008..............0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............4.....2 Inefficient government bureaucracy..........3.......................1. 2008 ..4......0 Restrictive labor regulations .................6 Tax rates ....4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......................87 .............2 8th pillar: Financial market sophistication.............

....................................................................■ Malaria incidence* ..........13 6...97 ........■ Soundness of banks .....■ Company spending on R&D ....................................................................■ Agricultural policy costs .......03 8..03 6.08 Secondary enrollment* ....................................................06 1......117 ......................................■ Extent and effect of taxation ....82 .126 .......04 8........06 11..09 Financial market sophistication.......................■ 12...52 .....08 Availability of latest technologies...88 ..........107 ......69 .........................................113 ..46 ............■ Local supplier quality ........................115 .....■ Availability of scientists and engineers ...........................................06 12............■ Extent of marketing ........................................111 ........08 Quality of overall infrastructure....07 6.............94 ......79 ...........105 ..................■ Burden of government regulation.....■ Inflation* ...109 .■ 7th pillar: Labor market efficiency 7................................................01 8..............................................................113 ..118 ...............03 5......84 ................■ Firm-level technology absorption...118 ............................................15 Intensity of local competition ...............................................................■ Production process sophistication .................■ 10th pillar: Market size 10..............................07 4............12 6.....................................107 ...................125 .44 .....................01 3...02 5.............................90 ..08 8.........08 11........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...............01 5..............■ Quality of scientific research institutions.The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............98 ....................03 3.■ Ethical behavior of firms .................................12 1.....................................■ 10...........................................................■ Time required to start a business* .................■ Willingness to delegate authority .......117 ...................................■ Judicial independence ....... of procedures required to start a business* ..........■ Public trust of politicians.......104 .....116 ...................03 2..........117 ...................................04 11.05 11.................................■ Mobile telephone subscriptions*..n/a Government debt*...........■ Tuberculosis incidence*..................69 ..............02 6.05 5....03 11.........15 1....................100 ................05 4.■ Business impact of rules on FDI .14 1.......18 1...........■ Business impact of HIV/AIDS ..........................08 7............................................116 ...10 6....................................05 2...........102 .........................................01 11.............07 Capacity for innovation .............02 Foreign market size index*...........01 2.........................■ Primary enrollment* .....................■ Nature of competitive advantage ...■ Internet users* ..........................02 11..............■ Tariff barriers* ...........86 .............■ FDI and technology transfer ...........■ Quality of the educational system .................■ Extent of market dominance ...................06 8.......91 .....■ Organized crime.................■ Pay and productivity..........■ Total tax rate* .................■ Strength of investor protection*..105 ....■ Protection of minority shareholders’ interests ...05 1......86 .........................■ 4........66 ..................■ Extent of staff training ..............108 ......74 .........68 .■ 11th pillar: Business sophistication 11......................103 .......105 .98 .........08 1.........55 ..............05 Government surplus/deficit* ..01 9...............................................06 5...................................01 7......................■ Local availability of research and training services .......110 ........■ 2..............112 ....................90 ...................01 4...............77 .......................04 2..■ No..........83 ....■ Value chain breadth.......120 .............119 ....■ Business costs of terrorism.................................................03 9......■ Ease of access to loans .....■ Wastefulness of government spending................................02 2........................■ Personal computers* ..................69 .............04 7.................................127 .........02 1.....■ Efficiency of legal framework in settling disputes................................................13 1....■ Prevalence of foreign ownership .............■ Interest rate spread*..........02 7....■ Internet access in schools ..............05 12.■ Efficacy of corporate boards ................54 .09 Local supplier quantity ..................128 ..................■ Available seat kilometers* ....................................................96 ...................02 8.......56 .................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................71 ........09 6.......................................................■ Diversion of public funds ...............02 3..■ Reliability of police services...........................46 .............63 .......................................................................■ 8........■ Life expectancy*......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5........■ Control of international distribution ..■ Financing through local equity market..........■ Brain drain ..............................■ Laws relating to ICT....105 ................................................93 ..............07 11...........11 Business impact of malaria..........05 9..........68 .......................04 5.......04 3...........■ Flexibility of wage determination......09 4..........101 ....■ Reliance on professional management .......07 9.............■ Quality of air transport infrastructure...10 4.............97 ...................■ Female participation in labor force*......................119 .........................03 12.....05 8.......86 .....................77 .........■ 12th pillar: Innovation * Hard data Note: For further details and explanation......01 Domestic market size index* ...............■ Regulation of securities exchanges ................30 .....■ Business impact of tuberculosis............................................................■ Quality of management schools .......98 .............................................■ Firing costs* .......■ Intellectual property protection.01 1.............■ 9th pillar: Technological readiness 9...104 ........................................06 7...........10 1................06 6.■ Burden of customs procedures ......121 ..............114 ...........................96 ............110 ....■ Degree of customer orientation ............22 ......114 .......116 ..07 7..........................■ Quality of railroad infrastructure .03 4.....123 .....09 1.....................62 ......................................■ Quality of primary education...79 .......17 1.........118 ..................06 4.........■ State of cluster development ...............89 .........................■ Infant mortality*.............................47 ............81 ......■ HIV prevalence*......118 .................118 .........07 5......04 9............................■ Legal rights index*.....................................04 1.....14 ...■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...................06 2......■ Strength of auditing and reporting standards .84 .............■ Prevalence of trade barriers..........02 4........................................................04 6.................82 ......................115 .........■ National savings rate*.....................................115 .........................................■ Restriction on capital flows .........33 .....................................■ Gov’t procurement of advanced tech products .....................119 ........11 1........07 8...............19 Property rights .......................■ Quality of electricity supply ................................... 2.........■ Telephone lines* ..........83 .........■ Buyer sophistication ....05 6...........95 ......06 9.......88 .........................■ University-industry collaboration in R&D .................■ Quality of math and science education ...................................................02 12..................■ Efficiency of legal framework in challenging regs ...........44 .........................120 ........■ Utility patents*....01 12.01 6................88 .....73 ......05 7.03 7...04 4........■ Favoritism in decisions of government officials .....................................08 6...■ Broadband Internet subscribers*.62 .......52 ............03 1...................14 6..............................66 .............02 9......■ Education expenditure* ..............................16 1.........■ Quality of port infrastructure................................................07 1......■ Effectiveness of anti-monopoly policy .............■ Tertiary enrollment* ...■ Venture capital availability .......98 ...............73 .........117 ...................................1: Country/Economy Profiles Benin The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 89 ............................07 2.......■ Business costs of crime and violence .......................■ Hiring and firing practices .............11 6.09 Cooperation in labor-employer relations ...■ Quality of roads..................08 4.........................■ Rigidity of employment*..■ Transparency of government policymaking ..........................................................................102 ...04 12..........................................................................

.................................................106 ...............6 11th pillar: Business sophistication.............131 ....5 6th pillar: Goods market efficiency.....12...........93 ....................3...4 GCI 2007–2008 (out of 131)..3...........1 5th pillar: Higher education and training .........2 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....3 Poor work ethic in national labor force .....................3 Restrictive labor regulations ...000 2.......4 Transition 1–2 1 GCI 2008–2009 (out of 134).................5.7 4th pillar: Health and primary education ...........10...................5..........................3 Poor public health .................................5 GDP (PPP) as share (%) of world total.....3....................2 8th pillar: Financial market sophistication..............000 6.. 2008............7 GDP (US$ billions)...................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .............. 2008 .........................................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......................3....8 Inflation ...........3...................1..........................128 ............................................3...................2................................3..........133 ............ 1980–2008 Population (millions)..............................1 Tax rates ....105 ...........9.................................2........7 1st pillar: Institutions ....4................3..........120 ...............................8 Corruption.........736........................ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..2.................. The bars in the figure show the responses weighted according to their rankings......................................2 Financial market sophistication Goods market efficiency Labor market efficiency Bolivia Factor-driven economies The most problematic factors for doing business Policy instability............................................2........................3......................87 .06 10.5 2nd pillar: Infrastructure.. 2008.....121 ....122 .0 7th pillar: Labor market efficiency ........94 .5..............................5 3rd pillar: Macroeconomic stability.118 ..........................................................................5..3 Crime and theft .....9 Inadequately educated workforce...............6 Government instability/coups ...............................3 10th pillar: Market size.....................................18.......132 .................0...............3 Tax regulations ............128 .........0........ 2008 ....17.............60 ..................2...............4 GDP per capita (US$)......5 Foreign currency regulations....................................3.............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.................3.........000 Bolivia Latin America and Caribbean 8.............0 Inefficient government bureaucracy.............................3..131 ........................6 Inadequate supply of infrastructure .........................................3..........................000 4...............1 90 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers............0 Access to financing ............................................131 .....................................................2.............0...........................0 12th pillar: Innovation.......4........................................5..15.................6 Factor driven Basic requirements...............................................2..................7...132 ...2 9th pillar: Technological readiness..1: Country/Economy Profiles Bolivia Key indicators GDP (PPP int'l $) per capita......

...................................12 6..■ Transparency of government policymaking ...........■ Business impact of tuberculosis.....■ Time required to start a business* .......................■ State of cluster development ...............................01 4.............................................05 7...08 11......■ Quality of air transport infrastructure.....................................................................03 8.........................■ Rigidity of employment*......■ Telephone lines* ..............07 1.......132 ...................■ 4......131 ..01 8..................09 Cooperation in labor-employer relations .......90 .■ Nature of competitive advantage ........................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.100 ....■ Soundness of banks ....■ 2......■ Interest rate spread* .................................................................................■ Reliability of police services........75 ..09 Local supplier quantity ...........14 6.......■ Tariff barriers* ...................■ University-industry collaboration in R&D ..........11 Business impact of malaria...........■ Quality of electricity supply ..08 6................10 1......................02 3..............................................104 .....95 .............53 .01 1................................................■ National savings rate*....................................................12 1.............■ 10.■ Primary enrollment* ..............■ Restriction on capital flows ....116 .............01 6..103 .130 ..............■ Flexibility of wage determination..................131 ...........■ Intellectual property protection.....................132 ...................................................■ Female participation in labor force*................................01 12....05 5............................04 7.............................■ Personal computers* .............24 ........09 Financial market sophistication..........■ FDI and technology transfer ...............129 ...05 1...................02 2........................131 ......................................................109 .....................■ Quality of primary education..06 9...116 .......................14 1.........■ 9th pillar: Technological readiness 9.........96 ....■ Tertiary enrollment* ...............■ No...93 ......129 ....■ Protection of minority shareholders’ interests .......................121 .08 Quality of overall infrastructure..........■ Government debt*...................08 4....................................................■ Business costs of terrorism.....98 .....117 .................128 .......112 ...............■ Internet users* ..............................01 3...........................01 Domestic market size index* .■ Tuberculosis incidence*.......06 8..02 12.........................■ Efficiency of legal framework in settling disputes.......87 .....■ Brain drain ...131 .■ Quality of roads...............................................................05 4.....■ Life expectancy*.........17 1..........06 7. of procedures required to start a business* .........58 ....■ Business impact of rules on FDI ............................■ Extent of staff training .....................■ HIV prevalence*.............08 Availability of latest technologies..................................................126 ........111 ...09 1............125 ............................■ Public trust of politicians.................04 6........108 .....■ Effectiveness of anti-monopoly policy .............................132 .■ Diversion of public funds ................101 ..........01 2...................113 ........■ Venture capital availability ..■ Quality of scientific research institutions......07 11......102 ..........................■ Firm-level technology absorption...............................115 ......04 9...........................90 ..133 .............122 ......................05 12......................130 ...............■ Degree of customer orientation ..04 2.......06 5..............129 ...................06 1...■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.....127 ......................■ 11th pillar: Business sophistication 11.......05 11...................■ Gov’t procurement of advanced tech products ..125 .......127 ..03 2...........■ 12th pillar: Innovation * Hard data Note: For further details and explanation.....06 2.............■ 7th pillar: Labor market efficiency 7.119 ..........03 12...............................■ Business impact of HIV/AIDS ..............■ Quality of math and science education ..............................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5......112 ..■ Education expenditure* .........■ Mobile telephone subscriptions*.........■ Prevalence of foreign ownership ...............03 1..........■ Inflation* .........■ Infant mortality*.............................07 8................104 .......................................................92 ..................123 .............■ Burden of government regulation...........................................124 .....127 ..06 11................02 11...1: Country/Economy Profiles Bolivia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 91 ...........■ Firing costs* .....................04 11.........................■ Efficacy of corporate boards .............05 6.■ Burden of customs procedures ......■ Quality of railroad infrastructure .................08 7...................69 .......................................129 ................■ Value chain breadth....■ Extent and effect of taxation ..........02 7..........03 9...■ Favoritism in decisions of government officials ........03 7..................110 ....................................................■ Available seat kilometers* ........129 ..................................110 ................131 ..........129 ........■ Financing through local equity market.....■ 12.......................131 ........................■ 10th pillar: Market size 10.............................13 6...............................124 ...............................07 7.............93 .............■ Quality of management schools .......07 9....................................06 6..■ Production process sophistication ..........133 ........■ Quality of the educational system ................19 Property rights .............03 5..................................102 ..................■ Willingness to delegate authority ............■ Utility patents*...........10 6.........18 1.................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........130 ........112 .......09 4......................................................112 ...117 ....................111 .........127 .....73 .............................■ Efficiency of legal framework in challenging regs ....123 ...85 .......27 .................06 4.........■ Broadband Internet subscribers*................112 ...99 ............ 2.....114 .......................................05 8............................■ Company spending on R&D ..126 ...04 12.........10 4............................................127 ..........01 11.......16 1...........................■ Ease of access to loans .....■ Ethical behavior of firms ........101 ...........02 1.............01 7.....................................126 .............117 .........■ Local supplier quality .....■ Local availability of research and training services ......133 .........................08 8........................................03 11...........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3....07 2...........06 12.............................02 8....121 ...............■ Reliance on professional management ...15 1..............................................................................133 .09 6................................02 5................■ Pay and productivity..........03 3...........................■ Business costs of crime and violence .....08 Secondary enrollment* ............................■ Malaria incidence* ....................130 ...................04 4........07 Capacity for innovation ..■ Laws relating to ICT........04 5.....................117 .■ Quality of port infrastructure ...............................■ Internet access in schools ..................128 ......132 ....■ Legal rights index*...04 1......................11 6.....07 4..........128 .......■ Extent of marketing .............97 ...........................................■ Wastefulness of government spending............08 1.............■ Hiring and firing practices ...............89 ..........100 ......................15 Intensity of local competition ....03 6..........86 .......■ Judicial independence ......13 1....108 ..■ Prevalence of trade barriers.............................................................131 ..........05 2.............................................54 .....07 5........04 8..■ 8...............02 4.....................................■ Buyer sophistication ............■ Total tax rate* ................................120 ..01 9....................02 Foreign market size index*...............103 ...............................16 .........■ Control of international distribution ..............................................................02 6...■ Regulation of securities exchanges ............■ Strength of investor protection*.............................132 ..133 ..........................................07 6............................................■ Strength of auditing and reporting standards ..................................89 .....■ Availability of scientists and engineers ...131 .81 ................05 9.......................122 ..........■ Agricultural policy costs ....03 4.......02 9..............................................■ Extent of market dominance .............11 1............04 3..82 .....................01 5...............................................121 .....■ Organized crime......05 Government surplus/deficit* .....103 ............

The bars in the figure show the responses weighted according to their rankings.000 2.................7 Poor work ethic in national labor force ..94 ............................................6 Factor driven Basic requirements...4 Corruption..........................7 1st pillar: Institutions .0 10th pillar: Market size........................25.....16....100 ...........2................4.... 2008..........................2...2................................104 .................3............2 Crime and theft ..........3.1 8th pillar: Financial market sophistication........8 11th pillar: Business sophistication....................3...........127 ............1 Policy instability......1.............. 1980–2008 Population (millions)..............................................................................000 4.....................9 GDP (US$ billions).......7 6th pillar: Goods market efficiency...........................................................................10..............................131 ......000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.................................................................................125 .........75 .0............4 GDP (PPP) as share (%) of world total....000 8..................1: Country/Economy Profiles Bosnia and Herzegovina Key indicators GDP (PPP int'l $) per capita.........128 ...............69 .........0..........................................................3...............3 Foreign currency regulations..........0 Inflation ......................................................107 ........3 12th pillar: Innovation..1..8 Restrictive labor regulations .........86 ....1........ 2008 .............6 GCI 2007–2008 (out of 131)................109 ................3..........106 .................................5...................3...............90 .................................................3...........3......128 ..............95 ...................2..........................................3.6 4th pillar: Health and primary education ..0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........................3..............9 2nd pillar: Infrastructure...............................................................4 7th pillar: Labor market efficiency ....4.....................7..........................11.........18................. 2008..............................................000 6...............1 Poor public health ....2 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..12.....3.....................................................3....7 9th pillar: Technological readiness.....6 Inadequately educated workforce...n/a 12........4 Inefficient government bureaucracy.....5 5th pillar: Higher education and training ........................3..3...5 GDP per capita (US$).....................3 92 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers...................625........4..........................2 3rd pillar: Macroeconomic stability.... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............3 Financial market sophistication Goods market efficiency Labor market efficiency Bosnia and Herzegovina Efficiency-driven economies The most problematic factors for doing business Government instability/coups ................................5 Tax rates ............ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....117 ....................2............................2..2 Inadequate supply of infrastructure .....000 Bosnia and Herzegovina Europe and Central Asia 10.......................3......100 ..5 Transition 1–2 1 GCI 2008–2009 (out of 134).................................0 Access to financing ............................................................6 Tax regulations ..............

....................04 9.........■ 12.....................10 4...................................94 ...............01 8..........................06 11.05 6..............13 6....17 1.........................128 ........................12 1.........■ No....■ Tuberculosis incidence*........01 1........■ 4.106 ..........02 11...132 .93 .............99 ........131 ..47 ......■ Brain drain ................■ HIV prevalence*......11 1...........................■ Intellectual property protection..07 5.........................................08 Quality of overall infrastructure..............■ Value chain breadth.....................■ Business impact of rules on FDI ..................................■ Control of international distribution .................5 .....122 ................................08 Availability of latest technologies...........02 3...........04 7.......115 ..........■ Efficiency of legal framework in challenging regs ..... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...03 4.....09 4.............................■ Government debt*...........................................■ Judicial independence ....1 ..........71 ..68 ............■ Quality of math and science education ..............................132 ....18 1.....06 9....n/a ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........■ Extent of marketing .....75 ...........14 6..129 .................67 ......130 ...........■ Degree of customer orientation ..............................02 7......................133 ...45 ...01 3.........................05 5...05 2.................................07 9...........■ Business impact of tuberculosis.....................................■ Legal rights index*...........■ Ethical behavior of firms ..............05 9......................................■ Ease of access to loans ...131 ..........124 ..........■ Financing through local equity market...............■ Company spending on R&D .........................129 ...............................59 .....132 .....97 ..............50 ................09 Cooperation in labor-employer relations ..........■ State of cluster development .......132 ............108 ..........11 6.....06 12........................114 .................■ Availability of scientists and engineers ..07 Capacity for innovation .....................■ Wastefulness of government spending..03 6...........■ Organized crime...............................04 8.....107 ....■ Strength of auditing and reporting standards .............................118 .117 ..........05 Government surplus/deficit* ............14 1..................02 9....131 ........04 5...........1: Country/Economy Profiles Bosnia and Herzegovina The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 93 .......................97 ........■ Favoritism in decisions of government officials ..........03 2.............09 1......■ Quality of scientific research institutions....................................■ Efficiency of legal framework in settling disputes.....................48 ...■ Flexibility of wage determination......08 Secondary enrollment* ................■ Quality of railroad infrastructure .....................11 Business impact of malaria..................■ Inflation* ............116 .....................03 1...........................133 .........................■ Transparency of government policymaking .......55 ............................................■ Protection of minority shareholders’ interests ................15 1.........■ Reliance on professional management ......■ National savings rate*.......■ Telephone lines* .....04 11.................■ Restriction on capital flows .......116 ......................■ Quality of the educational system ..............■ 10th pillar: Market size 10....90 ...................■ Quality of roads.............02 6.............................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....1 ......72 ..71 ........■ Production process sophistication .............78 .............■ Rigidity of employment*..71 ..■ Diversion of public funds ...............32 ...93 .......133 .10 1.■ Efficacy of corporate boards .........■ Tariff barriers* .........05 8..................................................■ 7th pillar: Labor market efficiency 7.....................................................■ Quality of air transport infrastructure...01 Domestic market size index* ..06 6........................■ Venture capital availability ...■ Local availability of research and training services .............122 ..........90 .............06 5..57 ....■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......................01 4............131 ...........................................04 6..................113 .........................................114 ................................124 ...............................126 ......................■ Personal computers* ...............129 .....................03 9.............■ Extent of staff training .........................07 11.............■ Willingness to delegate authority ..............04 2......123 ............................05 7............13 ............07 4.........................131 .......■ Prevalence of trade barriers.................................07 2........................■ FDI and technology transfer ..88 ...04 4.................................01 11..............■ Strength of investor protection*..........130 .................■ Reliability of police services...................................................................09 6.71 ...............................................03 3...........................■ Burden of government regulation............■ Local supplier quality .....................■ Extent of market dominance .............................116 .......03 12..................02 5............02 8.................■ Agricultural policy costs ........03 11..............02 2...■ Malaria incidence* ....The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..............................16 1...............................117 ..............................06 1................ 2...............■ Total tax rate* ..............................................08 4......................132 .......■ Mobile telephone subscriptions*................................09 Local supplier quantity ...03 8.....................96 .............................................■ Effectiveness of anti-monopoly policy ...........................100 .............04 3.............................01 6........................■ Burden of customs procedures ..........46 .........................................................................■ Firing costs* ....76 .....15 Intensity of local competition .■ Gov’t procurement of advanced tech products .08 8...............78 ..........131 ..........................133 .............95 ..........■ Public trust of politicians.............................122 ..■ Broadband Internet subscribers*.............................■ Business costs of crime and violence ..................................01 12.......................79 ..........................■ Primary enrollment*...06 4...........01 2....................................05 1..■ 10................08 11..........09 Financial market sophistication..■ 8............115 ......n/a Education expenditure* .......................■ Life expectancy*.....................133 ..■ Soundness of banks ......■ Business costs of terrorism..07 6........118 ..............76 ................122 .................■ University-industry collaboration in R&D .........08 7...■ Quality of management schools ...................121 ....................12 6........■ Firm-level technology absorption.........56 ............. of procedures required to start a business* ...............65 ....131 ....................................02 Foreign market size index*......07 1...........■ Infant mortality*..................■ Business impact of HIV/AIDS .......125 .......................■ Quality of electricity supply ...■ Female participation in labor force*.......133 ..............99 ..............................56 ........07 8........■ Laws relating to ICT..................■ Quality of primary education...................■ 9th pillar: Technological readiness 9.■ Hiring and firing practices .7 .............■ Interest rate spread* ...................................31 ............................02 1.............■ Quality of port infrastructure .............................................03 7..............■ Regulation of securities exchanges ............■ Available seat kilometers* .............................57 ....................■ 2......01 7...........■ Tertiary enrollment* ..06 7.....■ Nature of competitive advantage ....................133 ..08 1.....51 ..........................................■ Internet access in schools ..80 .....82 .....................■ Buyer sophistication .....................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.........................................07 7.............127 .■ Utility patents*.■ Extent and effect of taxation ........130 ...................................05 4.....................06 8...................................05 11.................................128 ............■ Prevalence of foreign ownership .....................................■ Internet users* ................13 1..........................114 ....................................02 4..............................02 12................03 5........■ Time required to start a business* .....124 ..10 6.........31 ..19 Property rights ................................................128 ..........................................56 ...................................................................01 5...............■ 11th pillar: Business sophistication 11.................04 12.......■ Pay and productivity......06 2...........08 6..................05 12.....106 ........01 9.04 1.................................................................1 .......

............2 GDP (PPP) as share (%) of world total....................41 ......... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............................................1..2 Tax rates .......................8 94 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers............9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......4.......................1: Country/Economy Profiles Botswana Key indicators GDP (PPP int'l $) per capita...................1 Policy instability.........4..............4.....................1 7th pillar: Labor market efficiency ................9 2nd pillar: Infrastructure............13....................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...................12............3..........4.......4..........................71 .16......58 ..... 2008...........2 10th pillar: Market size..........................118 ...........14...........2.............1.........79 ....... 2008 .........2 GCI 2007–2008 (out of 131).............5 6th pillar: Goods market efficiency..........................4 Restrictive labor regulations ........................9 Foreign currency regulations........................................2......................000 Botswana Sub-Saharan Africa 15.......9 Access to financing ....92 .......0...............................................4 Tax regulations .............29 ...............................................000 5....5 8th pillar: Financial market sophistication..................13....4............2......107 ...........3...............................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.............................0 Factor driven Basic requirements........8 5th pillar: Higher education and training .....7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...1 4th pillar: Health and primary education .........................76 .................................................5 Inflation ...4...............4.1...........................3............................5......87 .............9 3rd pillar: Macroeconomic stability.................................92 .......63 ...........................3.................................................................66 ..............7......................3......................9........................1 Transition 1–2 1 GCI 2008–2009 (out of 134)........................................3...9 GDP (US$ billions)........7......56 .....1 Financial market sophistication Goods market efficiency Labor market efficiency Botswana Economies in transition from 1 to 2 The most problematic factors for doing business Poor work ethic in national labor force .......................6..........3..................5 9th pillar: Technological readiness...6 Crime and theft .....4 12th pillar: Innovation............................................................. 1980–2008 Population (millions)..........................5 GDP per capita (US$)...................98 ...............5 Corruption....3 11th pillar: Business sophistication.....................3...............4.....2.............6 Inefficient government bureaucracy.....................................2 Government instability/coups .47 ........................6 Inadequate supply of infrastructure .......94 ....................................4 1st pillar: Institutions ...4...0 Poor public health ................................................................61 ... 2008..554.......................5 Inadequately educated workforce..2................... The bars in the figure show the responses weighted according to their rankings.........................................................n/a 20................000 10...........

.............■ Business costs of terrorism.......04 2.......03 4....■ 9........■ 11th pillar: Business sophistication 11.07 11...........................81 ....92 ....................................■ Quality of math and science education .74 .................■ Broadband Internet subscribers*............58 ......111 .........121 ........................■ Extent and effect of taxation .......07 6..........04 1.............................................02 7.49 .........01 12..............................■ Business costs of crime and violence ..92 .........85 ........■ Firm-level technology absorption..............06 4..............01 4.........83 .......96 ...........................91 ............53 ......68 ..............08 6.....01 11.■ Available seat kilometers* .51 ...........................................117 ...86 .................07 8................................103 ..................................11 Business impact of malaria...................................■ Interest rate spread* ..................■ Soundness of banks ....42 ............03 7..........25 ...................05 12...........■ Education expenditure* ....04 4..........■ Organized crime..................■ Primary enrollment* ...................■ Reliability of police services..............28 .......................04 3....130 .....03 1.....■ Utility patents*.............1: Country/Economy Profiles Botswana The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 95 ...............122 ......................02 Foreign market size index*............■ Extent of market dominance ............69 ........................04 7...■ Laws relating to ICT.■ Life expectancy*.........................14 .....■ Government debt*.........58 .............................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..............................52 ...........11 1........................■ Prevalence of trade barriers......07 5........■ Legal rights index*......................................07 4................................■ National savings rate*..........01 1...01 3..........................................................06 12.......................................■ Extent of staff training ...................■ Brain drain ...........................8 ..................■ Tariff barriers* ..98 ................................06 5...............06 11.................113 .........................25 ............95 ..................02 5............■ Venture capital availability .............100 ..............■ Production process sophistication ...........................................■ Tuberculosis incidence*............................05 2..15 1....08 11.......■ University-industry collaboration in R&D ................20 .....■ 9th pillar: Technological readiness 10th pillar: Market size 10..................................11 6..............133 ..01 9........................................... of procedures required to start a business* ....................................■ Quality of railroad infrastructure ......................................................■ Hiring and firing practices ............109 ......108 ................■ Prevalence of foreign ownership ..............04 6.......44 ...........03 11...■ Restriction on capital flows ........................................■ Infant mortality*.57 .■ Effectiveness of anti-monopoly policy ...68 ........................................38 ..........■ Intellectual property protection.........06 2.88 ................................■ Firing costs* ....12 .....................06 7..........■ Burden of government regulation..........■ State of cluster development ......................02 8....02 2............■ Strength of auditing and reporting standards .................■ Quality of scientific research institutions.........................08 Quality of overall infrastructure........................03 5.40 .....................■ Ease of access to loans ............■ Burden of customs procedures ....................127 ............................................■ Quality of primary education..........02 4....■ 4..........■ Flexibility of wage determination.............03 9........05 Government surplus/deficit* ...........................................■ Ethical behavior of firms ......01 2............................126 .......■ Total tax rate* ..........05 4.06 1..........17 1....08 7......................................................■ Female participation in labor force*.....44 .42 ......7 ............05 6........50 ......■ Public trust of politicians.............................................................................................................28 .......■ FDI and technology transfer ......................................73 ......32 .............79 ............................■ Availability of scientists and engineers ..81 .....115 ...07 9........73 ......38 ........................02 12...............95 ....................................02 3..........■ Quality of the educational system ......■ 8........05 11...................................■ Wastefulness of government spending..10 1...■ 12.01 8..................08 Availability of latest technologies.............80 .05 7................................■ Degree of customer orientation ....................10 4........................45 ...104 ..................05 1.................................49 ...................■ Quality of electricity supply ......09 Financial market sophistication...■ Rigidity of employment*...01 7....■ Favoritism in decisions of government officials ..................................................62 ..................14 6...............71 .........■ Diversion of public funds ......■ Buyer sophistication ....03 3.......................09 Cooperation in labor-employer relations .............................■ Value chain breadth.....40 ....02 9....09 1...07 1.....■ Efficiency of legal framework in settling disputes.............■ Efficiency of legal framework in challenging regs ......................■ Nature of competitive advantage ..........45 .......98 ..................13 1.........131 ................68 ........19 Property rights ..................................................■ Inflation* ...................................■ Control of international distribution ..............■ 12th pillar: Innovation * Hard data Note: For further details and explanation........................................................................■ No.......■ Pay and productivity.........................■ 7th pillar: Labor market efficiency 7...■ Malaria incidence* ..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........106 ...............■ Reliance on professional management ...03 6.....38 .........■ Internet access in schools .......04 8...................................■ Agricultural policy costs ...... 2.........■ HIV prevalence*....................05 9.............................■ Willingness to delegate authority ...........................83 ..........■ Efficacy of corporate boards .14 1..............09 Local supplier quantity .....46 ......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6......13 6.................................53 ...............107 ...........................................51 ...34 .....................■ Business impact of rules on FDI ..115 ..85 ...............04 5...............■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3............■ Protection of minority shareholders’ interests ...........................18 1.............01 5..............04 12.12 6............................95 .........................................106 .................■ Quality of management schools ......■ Mobile telephone subscriptions*............47 .........94 ...........■ Local supplier quality ....................................06 6...........■ 2.......07 7......................112 ..........89 ................................04 9....................................15 Intensity of local competition ..............................■ Telephone lines* ...........................................122 ...■ Transparency of government policymaking ....■ Gov’t procurement of advanced tech products ...■ Time required to start a business* ..........................................................■ Personal computers* ..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5........................■ Extent of marketing ....03 8............44 ..........................06 8..............■ Business impact of tuberculosis......02 6..............73 ...15 ..............................31 ...16 1............................................■ Tertiary enrollment* ..................................................■ Quality of air transport infrastructure........................26 .....01 Domestic market size index* ................................................09 4.19 ..........■ Regulation of securities exchanges ............80 ....■ Local availability of research and training services ....■ Internet users* ...........................79 ....07 Capacity for innovation .........09 6...........................36 ............08 4..............05 5.................44 ...124 ...............................94 ..............................10 6...............124 ....118 ................07 2..04 11....08 Secondary enrollment* .........................■ Company spending on R&D ...■ Quality of roads..............01 6.....21 ...08 8............................39 .......05 8......47 ..........................03 12................................90 ......■ Financing through local equity market.................................03 2...............■ Strength of investor protection*.............02 1...........................102 ...........27 .......................................................78 .......08 1..............■ Judicial independence ....■ Business impact of HIV/AIDS ..........................34 ................■ 10..................................02 11.......................12 1....28 .■ Quality of port infrastructure....06 9.

.......0 Inefficient government bureaucracy...............3..........8 GDP per capita (US$).................1..5 9th pillar: Technological readiness........................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......3...................91 ..... 2008 ............0.....109 ................................................................1 11th pillar: Business sophistication....................................4...............1: Country/Economy Profiles Brazil Key indicators GDP (PPP int'l $) per capita......................2................4....................0.....1 GCI 2007–2008 (out of 131).....................194........4.......................................................1............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.............79 ......... 2008.................................7...............................5 Restrictive labor regulations ....14.................6 Government instability/coups ....86 12..............................................................1 6th pillar: Goods market efficiency....5 Financial market sophistication Goods market efficiency Labor market efficiency Brazil Efficiency-driven economies The most problematic factors for doing business Tax regulations ..................19...............................................................................43 ........38 ......................................10 .........000 Brazil Latin America and Caribbean 9.............51 ...................197.............0........4................................................0 Poor work ethic in national labor force ................58 ...............................................93 .......0...............4........0 1st pillar: Institutions ...4...............4 5th pillar: Higher education and training ...................................................................9.....0 Access to financing .3........0..8...................5.5 Corruption.................4.............32 ...................2....................3 8th pillar: Financial market sophistication.0 Inadequately educated workforce........................9 Foreign currency regulations...........18...... 1980–2008 Population (millions)....46 .................................11........ 2008 ............4........................... 2008..........................................6 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............4...........2 96 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...........4 Inadequate supply of infrastructure .2 Transition 1–2 1 GCI 2008–2009 (out of 134)......5........4................................3..........................5 3rd pillar: Macroeconomic stability.......9 Policy instability..................4............3....... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.........................................................72 ...................9 4th pillar: Health and primary education ..5 2nd pillar: Infrastructure.............572......64 .......1 10th pillar: Market size....................42 ...................0 Factor driven Basic requirements....80 ................10..................000 6..2 GDP (US$ billions).................6 12th pillar: Innovation..74 .........................0 Tax rates ...9 Crime and theft .................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ......4 GDP (PPP) as share (%) of world total................9 7th pillar: Labor market efficiency ............................000 3.........4........................................99 .....1 Inflation .. The bars in the figure show the responses weighted according to their rankings.......7 Poor public health ...1...................................56 .....

.......■ Venture capital availability ..................02 5........13 ...................60 .............68 ..........07 9................ 2..................03 2........08 Availability of latest technologies........................02 Foreign market size index*...■ Quality of scientific research institutions............................119 ....01 7.■ Business impact of HIV/AIDS ..........02 4...■ Quality of air transport infrastructure..........08 4............■ Quality of management schools ..............16 1.................■ Control of international distribution .■ Quality of port infrastructure .....103 ...77 ........75 .............................................................03 9..........................10 1.............■ Firm-level technology absorption...........■ HIV prevalence*.....78 .......■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......................08 6.....................................■ Malaria incidence* ............................■ Extent and effect of taxation ........................■ Local availability of research and training services .......01 9.............■ Value chain breadth.........................12 ..86 .............................9 ................70 .............................85 ............05 6...■ 2......................................02 2................89 ...............................06 9.■ Favoritism in decisions of government officials ....................01 Domestic market size index* ......06 6...........02 8.....06 11...50 ..........................■ Business costs of terrorism.............■ Wastefulness of government spending...66 ............■ Degree of customer orientation .....■ 7th pillar: Labor market efficiency 7............................................................11 1..........11 6............................03 5...........■ Efficacy of corporate boards .................. of procedures required to start a business* ...............................................14 6.29 ..03 11....................................59 .....................03 4........■ University-industry collaboration in R&D ..............................41 ............13 1........91 ...............96 .........................................................................81 ...07 11...........06 2....■ Gov’t procurement of advanced tech products .......................70 .......................■ Personal computers* .■ Extent of market dominance ........05 11......09 Cooperation in labor-employer relations .04 1.................10 6...52 ...........■ Infant mortality*..74 ......08 Quality of overall infrastructure............................................................01 1...........121 ...59 ...36 ....05 12........................04 2..................25 ...22 ...08 11.................■ Available seat kilometers* .........................■ Public trust of politicians.........03 8...........117 .........■ Inflation* .■ Burden of government regulation......55 .■ Financing through local equity market...........................................06 5.■ Education expenditure* ......................87 .....07 8...............■ Production process sophistication ...............................................................127 ....................123 .............04 12.....■ Agricultural policy costs ..............■ Restriction on capital flows .............71 ...132 .......35 ..................89 ....................■ Business costs of crime and violence .....■ Extent of staff training ..■ Strength of auditing and reporting standards .....06 12..............81 .05 Government surplus/deficit* .....................19 Property rights ..■ Business impact of tuberculosis..........................04 5.....................70 .........................................................■ Quality of electricity supply ...■ No.................■ Life expectancy*.......■ 9...................................12 6..........................................................02 6................55 .......................■ Prevalence of foreign ownership ....92 ..................02 1..........03 7.......17 1....■ Efficiency of legal framework in settling disputes...................■ Intellectual property protection.................59 .........81 .............111 ............................08 1.29 ....35 .10 ......07 1.....................................■ 12...................................06 1................05 1.................■ Quality of math and science education ..................03 3.................126 ................................................................................................................07 2.....18 1..................................■ Internet users* ................................................................01 5.......36 .............07 4.68 ................61 ....................04 9.....78 ..................................................04 3..........................■ Nature of competitive advantage ...........................03 6....■ Business impact of rules on FDI ........■ Flexibility of wage determination...............................■ Protection of minority shareholders’ interests ..■ Rigidity of employment*...89 ......■ Efficiency of legal framework in challenging regs ......................■ Telephone lines* ........■ 11th pillar: Business sophistication 11.■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...................01 4...........................11 Business impact of malaria.■ Quality of primary education...59 .............................■ Total tax rate* ...........33 .........■ Firing costs* .........01 3...■ Burden of customs procedures .■ Ease of access to loans ...25 .........60 ...................................................128 ................64 .09 6............■ Reliance on professional management .........................02 7....................05 8............02 9...................■ Brain drain ...........................■ Regulation of securities exchanges ...49 .........................................05 5...........■ Female participation in labor force*........■ Soundness of banks .....................1: Country/Economy Profiles Brazil The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 97 .................................04 11...........117 ........■ Strength of investor protection*..23 ............................■ Primary enrollment* ....121 ....■ 10......95 ..................................01 8.■ Pay and productivity....26 .........62 ..........06 7.................■ 9th pillar: Technological readiness 10th pillar: Market size 10...........■ Buyer sophistication ........■ Internet access in schools ....■ Transparency of government policymaking ...■ Hiring and firing practices ..05 9....................................................01 12..127 .....■ Legal rights index*......■ State of cluster development ...........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.98 .......05 4......■ Government debt*.■ Quality of the educational system ...................52 ...........02 12..15 Intensity of local competition ...........................07 Capacity for innovation ..........................68 ............29 ..................73 ................04 6.■ Quality of roads..118 ...■ FDI and technology transfer ...............95 ................................■ Diversion of public funds .03 1...02 3.............................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5......................54 ......12 1.....................65 ..............34 .................................................05 7.......................44 ....128 .......15 1........05 2.....................5 ..........................■ National savings rate*.■ Broadband Internet subscribers*...................................................................■ Laws relating to ICT.................04 4.....■ Ethical behavior of firms ...69 ...........................................09 Local supplier quantity ................■ 8............................................................01 11..■ Quality of railroad infrastructure .......■ Reliability of police services...........................110 ...............06 8......57 ......■ Utility patents*........................................08 7...............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..................58 .....................14 1..................■ Prevalence of trade barriers........ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................................................■ Willingness to delegate authority ..............■ Company spending on R&D .......................07 6..10 4.........09 Financial market sophistication............■ Effectiveness of anti-monopoly policy ........................08 8...96 .................................................................04 8.......................................34 ..............................40 .....■ Organized crime......02 11.......■ Judicial independence ......10 ..09 4.....................57 .....................47 ..............................08 Secondary enrollment* .....................07 7.31 ...■ Tertiary enrollment* ...67 ..................■ Local supplier quality .13 6...10 ...86 ...■ Extent of marketing ......................................................04 7....■ Time required to start a business* ................129 .............................................35 .......09 1...............55 ............■ 4.....................■ Availability of scientists and engineers .......................■ Interest rate spread* ..28 .....70 ............■ Tariff barriers* .....................................06 4...03 12........................■ Mobile telephone subscriptions*.......................94 ...........................................42 .............................................................66 .....133 ..01 6.........■ Tuberculosis incidence*........................................98 ............................106 ...41 ...07 5............01 2.........................35 ............118 ..

........60 .............................................. 2008 ...............................10 ............................0........................................... The bars in the figure show the responses weighted according to their rankings...19 .................n/a Factor driven Basic requirements....5......1.............................37.....5....................68 ...........1.............................62 .........4........................................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........................6 GDP per capita (US$)...............1...................053...............39 ......36 .........................................9 7th pillar: Labor market efficiency ..........3.........6 4th pillar: Health and primary education ............................................................................0......000 Brunei Darussalam East Asia and Pacific 40.....................3............5.........................2.....................................20....................................3................6 Crime and theft .10......................32 ......3...............................2 9th pillar: Technological readiness................4......1: Country/Economy Profiles Brunei Darussalam Key indicators GDP (PPP int'l $) per capita.............................4 GDP (US$ billions)...............1 Inadequately educated workforce........................6 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..4 Tax rates .. 2008.15..................................................2.........4......5 Poor work ethic in national labor force ...2............................................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........................................9 5th pillar: Higher education and training ...............................................................0 Financial market sophistication Goods market efficiency Labor market efficiency Brunei Darussalam Economies in transition from 1 to 2 The most problematic factors for doing business Restrictive labor regulations ...7........3.........................77 .......................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..............................5 GCI 2007–2008 (out of 131)..6...81 ...............100 ........................................................6 3rd pillar: Macroeconomic stability........14.......................15.......................6 Transition 1–2 1 GCI 2008–2009 (out of 134).................................1..........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..115 ..4.......7 Inadequate supply of infrastructure .0 GDP (PPP) as share (%) of world total..............n/a ..9 Inefficient government bureaucracy..1.................................1 6th pillar: Goods market efficiency...................76 .75 ...........4.....1 Tax regulations ..0.....n/a 60...................................................17.....000 20........1 .....1 Government instability/coups ..................8 2nd pillar: Infrastructure....................... 1980–2008 Population (millions)..8 12th pillar: Innovation...42 ...........9 Corruption...........41 ..............8 98 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................4 Policy instability...........4 1st pillar: Institutions ....................................9 Poor public health ..............2...............9 Inflation ............4.. 2008.......................3........................2 8th pillar: Financial market sophistication.3 Foreign currency regulations....3 Access to financing ......................4 11th pillar: Business sophistication.................................8 10th pillar: Market size.....

91 .............86 ............■ Value chain breadth..■ Extent of market dominance .....11 6............■ Intellectual property protection.......■ Efficiency of legal framework in challenging regs ......................................■ Organized crime..16 ...........■ 11th pillar: Business sophistication 11.....................93 ............91 ..................06 11...........52 ..07 8.....85 .......06 5.....................................................15 Intensity of local competition .......04 4......■ Burden of government regulation...........01 6........■ Agricultural policy costs ...78 ................■ Prevalence of foreign ownership ......06 2........■ Rigidity of employment*..................■ Production process sophistication ..........................42 .08 11.....05 5..........12 6.........................................................36 ..........09 Cooperation in labor-employer relations ......50 .....................03 4..■ Effectiveness of anti-monopoly policy ..................32 .....................126 ..■ 9th pillar: Technological readiness 10th pillar: Market size 10...................................05 11...42 ..................................■ Quality of railroad infrastructure.41 ..■ Utility patents*........................................126 .................02 8............36 .............05 4.............04 7.......09 Financial market sophistication.....................................................15 ............02 5......10 1................01 7........................................................37 ..........................38 ........................................................................08 Availability of latest technologies....56 ................................■ Tuberculosis incidence*.............62 ................... of procedures required to start a business* .........................■ Willingness to delegate authority ......■ Quality of primary education.........................■ Broadband Internet subscribers*......................................................................08 1.04 12...........63 ....■ Local availability of research and training services ......55 ........................05 7.........................■ Company spending on R&D ........................■ Business impact of tuberculosis.......90 .............................■ Telephone lines* .....■ Prevalence of trade barriers....117 ......6 .....................01 9..........■ Transparency of government policymaking .........■ Internet users* ....04 6..........61 ................29 ........14 ................................................40 ..................................08 6.................51 .................15 1....■ Pay and productivity........■ Ethical behavior of firms ..■ Strength of investor protection*.....65 ......................07 7.■ Reliability of police services..108 .......■ Firing costs* .....01 1.................................33 ............................46 ....92 . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.........................................■ Extent of staff training ......................19 ...................75 ....■ Quality of the educational system .............................................02 6....■ Efficacy of corporate boards .......................................04 9............54 .....03 1...............................................68 ............................01 5...■ Extent of marketing .................01 8...................09 1.....■ Burden of customs procedures .....................■ Quality of management schools ........................■ HIV prevalence*.................................04 1.....■ Judicial independence ....07 5...■ State of cluster development .............02 12...........................72 .....08 4...08 8..........................■ Hiring and firing practices ...................................................37 .08 Quality of overall infrastructure............................■ University-industry collaboration in R&D ......................................■ Total tax rate* .....................................■ Primary enrollment* ......05 2.....■ Availability of scientists and engineers ...03 9.........72 ......................■ Quality of roads...........■ Strength of auditing and reporting standards .......47 ..07 2...........02 Foreign market size index*....02 11........................72 ..........16 .............................03 11.........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............02 4..................02 1..................................■ Restriction on capital flows .........................................101 ...............05 Government surplus/deficit* ......02 2.......■ Extent and effect of taxation .9 ..06 12..................13 6.....■ Flexibility of wage determination...........■ Favoritism in decisions of government officials ......................01 11..................................................19 Property rights .....■ Business costs of crime and violence ...............................05 12........■ Soundness of banks ......60 ..■ Laws relating to ICT...........................................07 6.......■ Business costs of terrorism....................................■ Reliance on professional management .......■ Interest rate spread* .............101 .........09 Local supplier quantity .........04 2..............................................03 8...........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.........04 8.....................................■ Brain drain ..............03 6................06 9....69 ...02 9.......................04 11.........07 1............................01 12......■ Internet access in schools ...51 .......06 8...■ Protection of minority shareholders’ interests .................71 ....................■ No...................................1 ..■ Control of international distribution .......68 ...................■ Government debt* ...........39 ........110 .........................27 ............■ Ease of access to loans ..■ Nature of competitive advantage ..................■ Financing through local equity market.........................70 ...................1: Country/Economy Profiles Brunei Darussalam The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 99 .......74 ........04 5........06 7........10 4............03 7..........................06 1........05 9....................82 ....06 4...17 1.................................09 4....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.. 2.....07 9....................■ Diversion of public funds ..............64 ....................................................37 ..........64 ..108 ........32 ...08 Secondary enrollment* .........126 ......................................................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation..90 ....................................................01 2.................................................■ Malaria incidence* ....................03 2.............■ Business impact of HIV/AIDS .................78 .04 3..............60 .......................■ Personal computers* ........................................■ Business impact of rules on FDI .....07 Capacity for innovation .75 .........10 6............11 Business impact of malaria.....■ 12.............■ Public trust of politicians.......................................■ FDI and technology transfer .02 3.........09 6............................................■ Available seat kilometers* .....16 1........■ Mobile telephone subscriptions*...........78 .........49 ....................................51 ............■ Regulation of securities exchanges ..........01 4...................................................91 ................16 ...97 .................................05 8.......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................■ Inflation* .......................08 7...........................................................32 ...26 ..........■ Firm-level technology absorption.........■ Infant mortality*...................07 11.......07 4....................................................33 .......................................................................................■ Venture capital availability ....75 ....■ 2...................78 .....................................12 1............................74 .............................67 .....01 3...........■ Time required to start a business* .■ 8....■ 7th pillar: Labor market efficiency 7..............■ Quality of electricity supply ..■ 9........n/a Quality of port infrastructure............39 ....................90 ..............65 ...................................55 ...............2 ..............72 ....■ Quality of scientific research institutions....................121 ..................■ Legal rights index*.29 ........■ Degree of customer orientation ..........................20 ................■ Quality of math and science education .......■ Tariff barriers* ...........4 .■ Buyer sophistication ......................37 ...................■ Wastefulness of government spending.......6 .......................................................65 ..........03 12................05 1..39 ..38 ....■ National savings rate*............11 1..........................................06 6..............n/a 4.18 1..............................■ Local supplier quality ...14 6..01 Domestic market size index* .....■ Gov’t procurement of advanced tech products ..■ Tertiary enrollment* .........................................95 ......03 3......................13 1............■ Life expectancy*.......................42 ..■ 10.......■ Female participation in labor force*......■ Efficiency of legal framework in settling disputes...71 ........57 ............03 5.................02 7..............■ Quality of air transport infrastructure..........39 ...........14 1...........................................46 ........................05 6........47 ..........14 ..........■ Education expenditure* ...........

...........................000 20.........000 10............................1 1st pillar: Institutions ........6........4...............................................81 ...... The bars in the figure show the responses weighted according to their rankings............3.............................................................................60 ......3 Foreign currency regulations................6...................1: Country/Economy Profiles Bulgaria Key indicators GDP (PPP int'l $) per capita...... 2008................2...................89 ...........9 3rd pillar: Macroeconomic stability..... 1980–2008 Population (millions)..........................4.....................................................91 .................4 Inflation .................4...6. 2008 .....................................15.......................................2 Inadequate supply of infrastructure ...............4..........52.....................3..6 Restrictive labor regulations ........15............0.........4..............000 Bulgaria OECD 30................8 Tax regulations ..............4 Policy instability......4...3 Crime and theft .......2...2 2nd pillar: Infrastructure................................2 Tax rates ........................................5 8th pillar: Financial market sophistication......4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............1 5th pillar: Higher education and training .........102 .........................0 Poor work ethic in national labor force ...............................................................................6 GDP (US$ billions).................................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...........8 Corruption......56 .. 2008..............................9 Financial market sophistication Goods market efficiency Labor market efficiency Bulgaria Efficiency-driven economies The most problematic factors for doing business Access to financing ........45 .....................3.........89 .....................5..1 9th pillar: Technological readiness...5............0 GCI 2007–2008 (out of 131).. 2008 ...58 ........4.........................................76 ......62 ............................................................4......................9 4th pillar: Health and primary education .....3.......4....................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............7 12th pillar: Innovation........................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.............5 100 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..........2.....4.............54 ...............9 Factor driven Basic requirements.................4.....................1 6th pillar: Goods market efficiency.................................80 ..........4.........0.......7...............116 .......58 .................................3 Poor public health ..................3...856..2.........................79 .......76 ............................................8 10th pillar: Market size...........................5............... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............7..................................0 7th pillar: Labor market efficiency ...0 GDP per capita (US$)....................0 Transition 1–2 1 GCI 2008–2009 (out of 134)..........0 Inefficient government bureaucracy....76 .........9 GDP (PPP) as share (%) of world total.........2...................14 40......3 11th pillar: Business sophistication.................................8...3..........................................................5 Inadequately educated workforce........11.........8 Government instability/coups ................

.04 4.....................110 ..............................■ Extent of marketing ..............96 .■ Infant mortality*......■ Quality of electricity supply .......■ 11th pillar: Business sophistication 11.■ 10th pillar: Market size 10..............■ Primary enrollment* ..................06 4.........08 6..■ Willingness to delegate authority .....81 ..........................92 .................................82 .........07 2......................■ Value chain breadth........■ 9th pillar: Technological readiness 9...........02 3......................................■ Efficacy of corporate boards .......118 .........60 ..............................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3......126 .■ 12......04 2...........................03 12.....................................08 8..116 ...73 ............................102 ................■ Availability of scientists and engineers .................................56 .....75 ...........113 .....■ Business impact of rules on FDI ......................■ 8....................110 ............................105 ............................06 6....02 Foreign market size index*.................................05 5..........31 ..............09 1..11 1..07 9......................................................■ Business impact of tuberculosis.............08 11......................10 6.....17 1........05 8.■ Financing through local equity market..93 .........99 .....11 Business impact of malaria........................................................12 6...............■ Burden of government regulation...■ Diversion of public funds .................■ Quality of primary education.■ Education expenditure* ......5 ....................21 .....................................06 8.......................................108 ......■ Firm-level technology absorption......93 ...■ Regulation of securities exchanges ...92 ..................05 1.........06 7................115 .......................109 ....58 .............85 .02 1....................84 ....04 11........59 ......14 6..05 7.......36 ............102 .107 .■ Wastefulness of government spending...........■ Extent of market dominance .......................05 2..■ Quality of management schools ......■ 4..13 1..............53 .............06 12...............82 ...■ Soundness of banks ............■ Available seat kilometers* ............■ Hiring and firing practices ...02 12.............................58 ...........10 4.......09 Local supplier quantity ..............32 .............................■ Agricultural policy costs ...........09 Cooperation in labor-employer relations ..14 1..........................09 6.........31 .....................................02 4....01 7......................11 ....03 2.........■ Personal computers* .........................................................1 .................■ Malaria incidence* .........................................................124 ...........08 4........■ Time required to start a business* ..03 5................................■ Broadband Internet subscribers*..........75 ...06 2..................................................................107 ................................■ Life expectancy*............65 .....................................................02 8..........59 ...43 ......10 1...01 Domestic market size index* ......03 9.............■ Tariff barriers* ...................■ Organized crime..............42 .........70 ..■ Business impact of HIV/AIDS ...■ Gov’t procurement of advanced tech products ....102 ..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....■ Reliability of police services...........01 12..................15 Intensity of local competition ....04 3......................................■ Prevalence of trade barriers..01 2..............................50 ......................... 2....■ Favoritism in decisions of government officials ......07 1.................107 ........52 .................................49 ...06 11...........................■ Local supplier quality ....■ Firing costs* ....■ Female participation in labor force*........................■ No............95 ......15 1.......................08 Secondary enrollment* .....................13 6......59 ............08 Quality of overall infrastructure.......07 Capacity for innovation ....114 ...........................02 11.....■ Buyer sophistication ..........09 4.................■ Intellectual property protection..................■ Degree of customer orientation ...............15 .........................................................08 1..................05 9..............................■ Quality of the educational system ....■ Quality of math and science education ...■ Ethical behavior of firms ............■ Restriction on capital flows .....■ Efficiency of legal framework in challenging regs .......................01 11.............07 7......■ Quality of railroad infrastructure .......112 ..■ Total tax rate* ...07 8.................................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.............................■ Transparency of government policymaking .........■ University-industry collaboration in R&D .......97 ........................■ Mobile telephone subscriptions*.81 ...................92 .....................■ HIV prevalence*.01 5................82 ..03 11.....■ 10............................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....■ Strength of investor protection*.....01 1.................................45 ...........■ Pay and productivity.....12 1........01 3......................................54 .........■ Flexibility of wage determination......04 5............................................................................................■ Legal rights index*...........94 .....07 6.....04 6........71 .66 ..........■ Internet users* .........03 4.............1 ....43 .107 ......94 .......95 ...........01 4.......86 ...................................06 5..........03 3.........■ Brain drain .■ Local availability of research and training services .......■ Company spending on R&D .....■ Reliance on professional management ...1: Country/Economy Profiles Bulgaria The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 101 ..121 ...03 1.01 8........16 1.............108 ...........................■ Quality of air transport infrastructure...................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1................05 11..........04 8........................................73 .....................■ Quality of port infrastructure......................08 7................................26 .....■ Judicial independence ...................67 .........19 Property rights ........88 ............43 ..02 2...............56 ............104 .................85 ...02 9......................................■ Nature of competitive advantage ............■ Rigidity of employment*..■ Extent and effect of taxation ........................................02 7...■ Internet access in schools ...■ Protection of minority shareholders’ interests .....................110 .....03 7..........67 ..................................■ Effectiveness of anti-monopoly policy .........................73 ...............................■ Ease of access to loans ....■ Business costs of terrorism.........................................■ Tertiary enrollment* ........■ Production process sophistication ....................................... of procedures required to start a business* .........................................................■ Laws relating to ICT.......39 ..................■ Control of international distribution ...................................18 1.....■ Efficiency of legal framework in settling disputes...................01 6...........................................128 ....03 6.............79 .■ Interest rate spread* .................03 8...................■ 2..............■ Quality of roads.......................................08 Availability of latest technologies..........................■ Public trust of politicians..18 ..........................................................................05 Government surplus/deficit* ..........121 ...................98 ............07 5........■ Extent of staff training ..............................94 ...............■ 12th pillar: Innovation * Hard data Note: For further details and explanation......................88 ...120 .....■ Inflation* ..............................109 .......114 ............................................................................06 9.....................01 9.................................................................8 .....92 ......■ Venture capital availability ...1 .......................04 7......................112 ......................09 Financial market sophistication.......04 9..........04 1.......................................................................06 1........................................................02 5............05 6...................66 ..............■ Business costs of crime and violence ...78 .....■ Utility patents*...............05 12.........................■ Telephone lines* .......115 ..43 ..........■ FDI and technology transfer ..................97 ............................■ Tuberculosis incidence*.......................................................................11 6...........................................■ Quality of scientific research institutions...............................07 4....02 6.....■ 7th pillar: Labor market efficiency 7...13 ......................■ Burden of customs procedures .........................................■ National savings rate*......................07 11..131 ..■ State of cluster development .................04 12................................................108 .........■ Government debt*.............92 .............05 4...■ Strength of auditing and reporting standards .................■ Prevalence of foreign ownership .................

....1 11th pillar: Business sophistication.........6 3rd pillar: Macroeconomic stability..127 ...........119 .......................3...........................3.....6 4th pillar: Health and primary education .......105 .....................................3................3 9th pillar: Technological readiness.........28...2 1st pillar: Institutions .................1.................................................................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors................0......7..................6 6th pillar: Goods market efficiency................... 2008...........................................122 ..........7 Tax regulations .5 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ........6 Restrictive labor regulations ...128 .........3..........6 Inadequate supply of infrastructure .......16..1.............................1...................................................................8..................................3......................................................................1 Corruption..000 Burkina Faso Sub-Saharan Africa 1...................117 .4............11............................................130 .. 2008........98 .................................................2...........115 ............................127 ........5 Poor work ethic in national labor force ........................6 10th pillar: Market size.............................. 1980–2008 Population (millions)...6 Policy instability....2......577....................................2.2.............................................................8 2nd pillar: Infrastructure............................................3.............0 Financial market sophistication Goods market efficiency Labor market efficiency Burkina Faso Factor-driven economies The most problematic factors for doing business Access to financing ................................9 7th pillar: Labor market efficiency ................2 Transition 1–2 1 GCI 2008–2009 (out of 134)...............2..........3.......500 1......................4 GCI 2007–2008 (out of 131).....4 Factor driven Basic requirements... 2008 ..............60 ..............2...............................................3.........1: Country/Economy Profiles Burkina Faso Key indicators GDP (PPP int'l $) per capita........6..............................8..................................3...........................5.......3.................2 GDP (US$ billions)........122 ......2 12th pillar: Innovation......7 Foreign currency regulations..............................0 GDP (PPP) as share (%) of world total............... The bars in the figure show the responses weighted according to their rankings..........15............................................0 102 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers..............................................1 GDP per capita (US$).130 .7 Tax rates ...............1 Government instability/coups ......................4........... 2008 .4 8th pillar: Financial market sophistication........7 Crime and theft ...............................123 .....0................8 Poor public health ............................................................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..........76 ....... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.2...............................2 5th pillar: Higher education and training ..........4 Inflation ..000 500 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010....1 Inadequately educated workforce.......112 ..........118 ........03 2....................3.......0..................3.................3....71 ............6 Inefficient government bureaucracy.....

..........■ Interest rate spread*...........01 3.......................05 11...............■ Financing through local equity market..................119 ........................................................44 ....120 ...........................126 ...........■ Local supplier quality .............................................07 8..................01 9...06 6..........................04 1.........................08 6.......................................................................74 .............67 ..........07 2..131 ................................■ Reliance on professional management ......................■ Organized crime........06 7...............................■ Quality of railroad infrastructure .....118 .......77 ..64 ...........................64 ..10 4......07 7.10 6..122 ..........■ Judicial independence .........................■ Efficiency of legal framework in challenging regs ..............■ Legal rights index*.............128 .■ 12......99 ................................................... 2..........15 Intensity of local competition .........78 ...■ Wastefulness of government spending..110 ..■ Malaria incidence* ....................■ Favoritism in decisions of government officials .....■ 4............04 3...08 11...04 8..........118 ........05 7.......................................................■ Internet users* ...............................92 ......................129 ...............■ Efficiency of legal framework in settling disputes.......................................03 6...............................................125 ..........02 5...03 8......■ Firm-level technology absorption..05 6.....04 11...................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.103 ..........................110 ...08 7...........08 1..87 .........02 4..................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..96 ...........127 ..............................................................................113 ...............76 .......99 .■ Quality of management schools .113 .101 .........02 8.....02 7....................................................................■ Total tax rate* ..........■ Tuberculosis incidence*......01 8..............04 4...............................06 5.....................■ Laws relating to ICT......127 ...............07 5.08 8.........11 6..86 ...08 Availability of latest technologies...........■ Extent of market dominance ......................81 ........125 ...15 1.■ 9th pillar: Technological readiness 9......53 ............61 .......37 ................50 ...■ Internet access in schools ..............................07 6........107 .....................09 Local supplier quantity ...................■ Prevalence of trade barriers..............■ Business impact of rules on FDI ..07 9..........■ Mobile telephone subscriptions*........88 ........72 ........■ Buyer sophistication ....13 1.........................17 1................127 ......................................08 Quality of overall infrastructure..n/a Government debt*..■ Extent and effect of taxation .............................................................................................................10 1....14 6.......03 11..■ Hiring and firing practices ..........■ Firing costs* ...93 ............................■ Utility patents*............107 ...■ Quality of port infrastructure......08 4.......................83 ................113 ..........■ Reliability of police services..............■ Business impact of tuberculosis........ of procedures required to start a business* ...04 9..............92 ...........................59 ..■ Quality of electricity supply .......53 .....86 ..94 ..............................89 ......11 Business impact of malaria...........................01 5..■ Quality of air transport infrastructure............■ Education expenditure* .........................■ Rigidity of employment*..............................................■ Broadband Internet subscribers*..........109 .............................16 .................03 2.......■ Inflation* ........■ Public trust of politicians..........................................■ Quality of primary education....................................................44 ....05 2.■ Primary enrollment* .13 6.............109 ..............■ Time required to start a business* ...03 1......................................19 Property rights .......79 .....09 6............................96 .............■ Tariff barriers* ..............................................................02 9............................65 .132 ...........■ National savings rate*............04 7.....09 1.........92 ..............................................03 7.....................01 12..■ Value chain breadth...........07 Capacity for innovation ....124 ....................................130 ..................................■ Extent of marketing ...........60 .........................................■ Diversion of public funds ..................................■ Degree of customer orientation .......■ Telephone lines* ..............................105 ......................................................92 ................03 12............■ Tertiary enrollment* ....................................................113 .■ Agricultural policy costs ..■ FDI and technology transfer ...132 .........■ Nature of competitive advantage .................06 9.................................................■ Venture capital availability ...■ State of cluster development .....................02 6.■ 12th pillar: Innovation * Hard data Note: For further details and explanation..............................................■ Female participation in labor force*..■ Protection of minority shareholders’ interests .............04 12........................................................06 2....................................■ Ease of access to loans ..................01 2....104 .......................................................■ Pay and productivity.......................75 .........05 1.........■ Business impact of HIV/AIDS .....■ Production process sophistication ...111 .................07 11.....................03 5......73 ..............■ 10..■ Soundness of banks ...................05 12....................................■ Transparency of government policymaking .....05 9.....02 1.......................16 1............................................09 4.......06 1..02 Foreign market size index*.............■ Ethical behavior of firms ................02 11..................................101 ........■ 7th pillar: Labor market efficiency 7........................29 ......................76 ............03 3............................■ Restriction on capital flows ..........■ Available seat kilometers* ...............................■ 2....................................................04 6.............01 1.............101 ......................■ Quality of scientific research institutions.■ University-industry collaboration in R&D .................................■ Company spending on R&D ..03 9................................122 ............................02 3......58 ..............82 .................................132 ............■ Quality of math and science education .....110 ........01 4...............■ Burden of government regulation..■ Brain drain .02 12...................................■ Regulation of securities exchanges .........................■ Prevalence of foreign ownership ............■ Life expectancy*...■ Intellectual property protection........71 .06 12..121 ..08 Secondary enrollment* .......................132 ...65 ............................02 2....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3......54 ..........■ 8.................12 1........01 Domestic market size index* .....127 ................■ 10th pillar: Market size 10..........................................................05 Government surplus/deficit* .131 ............83 .......................127 ........98 ..............18 1.............................71 .■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.............05 5........................11 1...............01 7..............................................103 ....06 8......06 4.......1: Country/Economy Profiles Burkina Faso The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 103 ..............61 ...■ Infant mortality*.......132 .............■ Business costs of crime and violence .....03 4..........119 ....................12 6........64 ................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.................04 5..........90 .06 11........09 Cooperation in labor-employer relations ..............■ HIV prevalence*................07 1.........04 2......■ Control of international distribution .................98 ........■ Flexibility of wage determination..........■ Local availability of research and training services .67 ......................■ No................■ Personal computers* ..................■ Efficacy of corporate boards ..............80 .........■ Quality of the educational system ......■ Willingness to delegate authority ..................86 ...........................■ Effectiveness of anti-monopoly policy ............92 ...09 Financial market sophistication.........................................121 ............................■ Business costs of terrorism.....07 4...14 1.....................94 .........................01 6..........................■ Strength of investor protection*..........■ 11th pillar: Business sophistication 11......■ Extent of staff training ......................■ Strength of auditing and reporting standards .............................109 .....05 4.................01 11.......34 .....................■ Quality of roads...28 ..■ Availability of scientists and engineers .......05 8..........133 ........................................................■ Burden of customs procedures .........■ Gov’t procurement of advanced tech products ....................

.1 Inadequate supply of infrastructure ..........................8 Poor work ethic in national labor force ... 2008 .............2.....................130 ............8......6 Foreign currency regulations.......7 5th pillar: Higher education and training ...............1...3.125 ..............................5 6th pillar: Goods market efficiency. 1980–2008 Population (millions)...6........3 Restrictive labor regulations .....................................2....1.........2.............2....... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...........129 ...................................................................... 2008 .....1.....8 Policy instability....... 2008.............................2........................................119 .133 .1..............00 2.............................8 Inflation ..........129 ..........................5 Corruption.................................1 8th pillar: Financial market sophistication..............3........................................3.............................2 7th pillar: Labor market efficiency .................14....................6..7 104 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................................5 1st pillar: Institutions ..2......8 Factor driven Basic requirements..............................................................2.... 2008...........20................. The bars in the figure show the responses weighted according to their rankings.1: Country/Economy Profiles Burundi Key indicators GDP (PPP int'l $) per capita..3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............3 10th pillar: Market size................8 Inadequately educated workforce.......0...........7 9th pillar: Technological readiness...1 GDP per capita (US$)..............133 .3.......2 Inefficient government bureaucracy.119 ........4 3rd pillar: Macroeconomic stability................................................................8...............8 2nd pillar: Infrastructure...............4 Tax rates ......6 Financial market sophistication Goods market efficiency Labor market efficiency Burundi Factor-driven economies The most problematic factors for doing business Access to financing ...000 Burundi Sub-Saharan Africa 1......2......6 Transition 1–2 1 GCI 2008–2009 (out of 134)....................2..................................................................116 ....2...............9 GDP (US$ billions)......................................16..................................................8 Government instability/coups ..................................................138....................0 GDP (PPP) as share (%) of world total......000 500 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010........101 ...................9 11th pillar: Business sophistication.... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5......................................121 ......1 Tax regulations ..............................................................8 Crime and theft .......132 ........500 1...2.....................2......3...5......0 GCI 2007–2008 (out of 131)................0.......................5.........5 Poor public health ..............2.....................4....................................................................131 ...........................132 ......3...........133 ............................132 ........133 ............................................3 12th pillar: Innovation........2.............0 4th pillar: Health and primary education .........129 ..............1.........................................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................................

..■ Hiring and firing practices .115 ....■ Telephone lines* ...............■ National savings rate*..123 ....07 Capacity for innovation .13 6.06 6.........98 .....111 ......04 4...101 ..........07 2........117 ...........................10 6.................................................01 6......18 1......94 ...07 11..............121 ................................■ Ease of access to loans .......110 .......................05 5........n/a Quality of port infrastructure .■ Available seat kilometers* ..............08 7...............05 8..04 12.................■ Quality of scientific research institutions.........03 8............................■ Firm-level technology absorption....................54 .........................................■ Extent of staff training .■ Personal computers* .............88 ..................................................■ Primary enrollment* ....120 .13 1....................................................116 .....123 .08 Quality of overall infrastructure..............12 6.............132 ............126 ..■ Effectiveness of anti-monopoly policy ...............................................90 .........06 4.....12 1.■ Burden of customs procedures .....10 4.....■ Tuberculosis incidence*.......125 .....■ 4..■ Strength of investor protection*.......105 ..............07 9......■ Time required to start a business* ........83 .........................................10 1..■ Transparency of government policymaking ............................116 ..................119 .......132 .....................................114 ...03 5...■ Malaria incidence* ..........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......................................03 12....■ Mobile telephone subscriptions*..............11 1...........................■ 7th pillar: Labor market efficiency 7..................05 9..........126 ................133 ...................................................................■ Female participation in labor force*................................■ Prevalence of trade barriers...............■ Pay and productivity........111 ........ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..03 4.....104 ..130 .........................................06 1.....07 7....06 7........................127 ............63 ...............................99 ...................■ Business costs of terrorism........................................................09 Cooperation in labor-employer relations ...........14 1.■ State of cluster development ...125 .■ Wastefulness of government spending........■ Infant mortality*.......................131 ..............................131 .128 .■ No....■ Intellectual property protection............................129 ..............................09 1....................................125 ......................■ 2............■ Efficiency of legal framework in challenging regs ..............................129 ...........................46 .......■ Extent of market dominance .....................................03 2...■ Interest rate spread*........02 11............75 ................................■ 11th pillar: Business sophistication 11............■ Degree of customer orientation ..............................08 Availability of latest technologies.....04 11.....112 ..................15 Intensity of local competition ...............17 1....................115 ...........05 1.....11 6...........................101 ...........................■ Buyer sophistication ..................................03 7............06 5.04 6...........■ Nature of competitive advantage .......■ Extent and effect of taxation .09 Financial market sophistication..■ Utility patents*...01 9....................................................130 ............■ Agricultural policy costs ............................n/a Government debt*.......................................................121 ..............116 ........................................122 .01 1.....07 5.........................129 ..................................................■ Quality of primary education.................■ Local supplier quality .....01 8.■ Business impact of tuberculosis.....................■ Organized crime...01 5...■ Education expenditure* .....■ Burden of government regulation..07 4.................................130 ........................................................■ HIV prevalence*...........02 4.............................................87 ...................................108 .....................06 12...........19 Property rights ..........02 9..............02 8.■ 12th pillar: Innovation * Hard data Note: For further details and explanation.........................133 ........................05 6........09 6...08 8.............................07 8......■ Firing costs* ..01 3.121 .........04 7........■ Control of international distribution ..........................123 ........................09 4...02 Foreign market size index*.....■ 12.■ Favoritism in decisions of government officials .......................■ Efficacy of corporate boards ....................■ Business impact of HIV/AIDS ............................37 ....................02 6..125 ...41 .....02 7.........................................11 Business impact of malaria.....................................................08 Secondary enrollment* .■ Soundness of banks ..........................■ Business impact of rules on FDI .128 ..........03 3......125 .........................■ University-industry collaboration in R&D ........................................■ Laws relating to ICT........■ Value chain breadth.........01 4..............01 11..............■ Quality of roads................131 ............116 .....112 .01 Domestic market size index* ..............■ Reliability of police services....■ 9th pillar: Technological readiness 9................03 1........109 ...........■ Regulation of securities exchanges ........■ Venture capital availability .............131 ................................................14 6.......123 .........................................122 ..................■ Tariff barriers* ..............................................01 7..98 ..........132 ..............08 11............■ Brain drain ............08 4..............130 .................■ Judicial independence ..05 4.......03 9........3 ......................131 ...............108 .....01 2..■ Quality of railroad infrastructure......04 1.................1: Country/Economy Profiles Burundi The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 105 ....................................................128 ...............128 ......05 11..05 12............................................04 3..■ Life expectancy*..............06 11....................................08 1...130 .......02 2..........................129 ........................■ Protection of minority shareholders’ interests ...............127 ...........................................................................03 6.........85 ...06 2..15 1..................................................................■ 8..............123 .....■ 10.09 Local supplier quantity ...................124 ................................■ Broadband Internet subscribers*.......................■ Willingness to delegate authority .■ Public trust of politicians..........116 ...................■ Quality of air transport infrastructure...........................126 ..■ Quality of the educational system ...02 12.......123 ....................■ FDI and technology transfer ............................ of procedures required to start a business* .■ Ethical behavior of firms ...07 6...........■ Availability of scientists and engineers ..............■ Diversion of public funds ..112 ...■ Inflation* ....■ Strength of auditing and reporting standards ........................................108 ..........07 1............■ Total tax rate* ........05 Government surplus/deficit* ...03 11...............109 .............................90 .........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..................................126 .....■ Reliance on professional management ............05 2...........121 .08 6.........................131 ...127 .......122 .........76 ........................................127 .......111 .........................................117 ........................16 1...02 5...■ 10th pillar: Market size 10.......................................................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.■ Efficiency of legal framework in settling disputes.............04 8.............................■ Company spending on R&D ..■ Business costs of crime and violence ..............................■ Internet access in schools ..........94 .........129 .....................................■ Extent of marketing ......■ Production process sophistication .115 ......■ Tertiary enrollment* ......127 .....................115 .......130 ...............................123 .■ Local availability of research and training services ..............■ Quality of math and science education ....01 12......................■ Quality of management schools ..............■ Gov’t procurement of advanced tech products ........................................02 1.......................05 7..................■ Quality of electricity supply ..........06 9....114 ................... 2.■ Flexibility of wage determination.........133 .....■ Prevalence of foreign ownership .................................................04 9............................................04 2.....130 ....................................04 5...■ Financing through local equity market.................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3................■ Internet users* ......■ Rigidity of employment*..■ Legal rights index*................................116 ...............06 8...■ Restriction on capital flows .02 3.........................

....................5 GCI 2007–2008 (out of 131)..................................3 Poor work ethic in national labor force ..........3.............................1 11th pillar: Business sophistication.......2...............3 Access to financing ..................................2.....................3....11..............113 .......................4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors................112 ..........92 ............................................818.......17.......4 12th pillar: Innovation... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...............8 9th pillar: Technological readiness.....................2 GDP per capita (US$).....3.......................122 .....6 Policy instability.................1....6 1st pillar: Institutions .......................................5.................000 2.............................6............ 2008 .... 2008 .4.... 2008.2.........4 Restrictive labor regulations ..4 Inflation .4 Inadequately educated workforce..2 Poor public health ........2.4 Tax rates ........................................107 ....7 10th pillar: Market size.............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..................................................................................................................................110 .....................................109 ...................8.........................3............103 .52 ...........................2..............6 Inadequate supply of infrastructure .....................................................................................................3...5 8th pillar: Financial market sophistication...................................................9 3rd pillar: Macroeconomic stability.......6..................................3..........5 Factor driven Basic requirements..................95 ..4 4th pillar: Health and primary education .......0 7th pillar: Labor market efficiency .................................................8 Crime and theft ..0.8 6th pillar: Goods market efficiency...........0............14.......110 ...............2..94 ...92 ............................................9 Tax regulations ....................4..................................5 2nd pillar: Infrastructure................3....................................... 2008......000 Cambodia East Asia and Pacific 4.......2........3................107 .........................107 ...........................1: Country/Economy Profiles Cambodia Key indicators GDP (PPP int'l $) per capita.3....85 ................ 1980–2008 Population (millions)... The bars in the figure show the responses weighted according to their rankings...........23.........................9 Inefficient government bureaucracy.4..9................2...5 Transition 1–2 1 GCI 2008–2009 (out of 134)......................................................4....1 GDP (PPP) as share (%) of world total...5......................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....3..3..2 Government instability/coups .........................................04 6............................122 ...........................2 Foreign currency regulations..7 GDP (US$ billions)..........1 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..5 5th pillar: Higher education and training ...........7 Financial market sophistication Goods market efficiency Labor market efficiency Cambodia Factor-driven economies The most problematic factors for doing business Corruption..............4 106 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.............................3......................................101 .............................

...01 5...■ Strength of auditing and reporting standards ......................06 7............................................................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation........■ Organized crime................■ Life expectancy*....................14 6................■ Female participation in labor force*.■ Financing through local equity market..111 ......120 ........112 .......93 ............08 8............■ Venture capital availability .88 ......124 ..............■ 11th pillar: Business sophistication 11...............■ Laws relating to ICT.................■ FDI and technology transfer ..65 ....................04 6..................04 2...............................■ Rigidity of employment*.....109 ...................■ Business impact of HIV/AIDS ..........................■ Pay and productivity.......07 9.......108 .............05 11.............■ National savings rate*.....................■ 10th pillar: Market size 10.....................................■ Nature of competitive advantage ..04 9.100 ..............107 ................106 .■ Judicial independence ........................03 4...02 9...............05 Government surplus/deficit* ...............■ Brain drain ........103 ...........■ Hiring and firing practices .......90 ..■ Broadband Internet subscribers*.....■ Available seat kilometers* ....................02 11..........107 .............................................89 ..........■ Local availability of research and training services ........■ No.....96 .110 .................06 5...125 ..55 .■ Availability of scientists and engineers .....................10 4........02 4...................■ Ease of access to loans ........08 Quality of overall infrastructure...........13 .10 6.......................................................05 2.......04 5................03 5.................■ Business impact of tuberculosis.....75 ...................09 6.....01 2.14 1........■ Business impact of rules on FDI ............................50 ...........................06 8...................................■ Quality of scientific research institutions............................■ Tariff barriers* ............................................................01 Domestic market size index* .............................................................................115 .........................■ Prevalence of foreign ownership ..............................................................09 4.....119 .......05 8...................03 7..................................■ Efficacy of corporate boards ......................................12 1...47 .....................121 ...........08 11.....106 ....■ HIV prevalence*.04 8.73 ..........................11 1.......■ Company spending on R&D ..............■ Extent of market dominance .....................07 11............................04 12..................10 1................■ Time required to start a business* .........■ Primary enrollment* ........................................................04 1......................................■ State of cluster development ...............■ 2..06 12..........................................................13 1.................................................113 ...■ Flexibility of wage determination.......04 7.......94 .■ Gov’t procurement of advanced tech products .............120 ..93 ...■ Utility patents*..................■ Protection of minority shareholders’ interests .......■ Quality of electricity supply ...............48 .11 Business impact of malaria.................■ Buyer sophistication .............■ 4.........05 7.....59 ....12 6.................................07 1..72 .........■ Local supplier quality ..............................■ Ethical behavior of firms ..1: Country/Economy Profiles Cambodia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 107 ................■ Quality of the educational system ..................■ Strength of investor protection*........■ Soundness of banks .....■ Internet access in schools .....07 6....■ Efficiency of legal framework in settling disputes.......................................07 2.......06 2...................................................105 ........118 ................06 9..................49 .................114 .......................................92 ...118 ............98 ........02 8....■ Quality of port infrastructure.... of procedures required to start a business* ...............................75 .......07 4..........................■ Burden of government regulation.■ Burden of customs procedures ..........................................................■ Interest rate spread* ................113 ..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......04 11....15 Intensity of local competition ....90 .................................................................51 .........15 1..........................................05 12..05 1.......................................................08 7........................08 1............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5................111 .........................114 .......................06 6...............■ Quality of management schools .......■ Legal rights index*..........................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...■ 9th pillar: Technological readiness 9..................85 ...................08 Secondary enrollment* ..........■ Business costs of terrorism.....................57 ..13 6...........................98 .....36 .05 5.72 .......127 .......■ Production process sophistication .......................18 1...................................................................................■ Tuberculosis incidence*............84 ..............................58 .........129 ...............................■ 10....................02 2.................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...5 ...........................03 3.........56 ......■ Quality of railroad infrastructure ................................................................11 6..........07 7..........................................91 .■ University-industry collaboration in R&D ...03 1...................01 7.........................................■ Favoritism in decisions of government officials .02 1.................108 .....124 ..07 5...........08 6..........02 12.........■ Public trust of politicians...........................102 .............95 ...........106 ....■ 8....120 ...................114 ............■ Infant mortality*........................■ 7th pillar: Labor market efficiency 7.................................................................................■ Internet users* ................................101 .................04 4.....114 ...............................77 .......01 11........................................09 Financial market sophistication..06 11...........................03 12.03 9.............06 4.....77 .01 1.............................■ Quality of math and science education ..........■ Prevalence of trade barriers........■ Extent and effect of taxation ......................72 ..■ Telephone lines* ...................06 1.........■ Willingness to delegate authority ...........■ Transparency of government policymaking ..76 .........02 5................................................................................105 ..............................................58 .50 ........■ Quality of air transport infrastructure.......■ Wastefulness of government spending.....■ Reliability of police services................08 Availability of latest technologies..............109 .............................07 Capacity for innovation ...................■ Agricultural policy costs ....■ Tertiary enrollment* .............03 2..........92 .........................02 3..............130 ........■ 12.........113 ........................................■ Mobile telephone subscriptions*...02 6.....................................08 4.101 .........................■ Personal computers* ....03 11.....................................■ Total tax rate* ........01 9.....■ Government debt*....111 ..............................90 ...09 1.............16 1.......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...77 ...........78 .............................................01 12..........................89 ......■ Malaria incidence* ...09 Local supplier quantity ...........17 1................■ Extent of staff training .109 .....02 7..........................05 9..................................■ Degree of customer orientation ...71 ......................■ Quality of roads...■ Firm-level technology absorption.......03 6................■ Control of international distribution ........04 3.........■ Reliance on professional management ..69 ...........05 6................. 2........■ Inflation* ...........123 ..01 6..........125 .................88 ...07 8...................55 ...........■ Effectiveness of anti-monopoly policy .........................■ Education expenditure* .......09 Cooperation in labor-employer relations .......................................71 ................■ Regulation of securities exchanges .■ Intellectual property protection...■ Value chain breadth......82 ....106 .................■ Quality of primary education......01 8....................................101 ...105 ....05 4.........................................................114 ................................■ Restriction on capital flows ..■ Extent of marketing ......■ Efficiency of legal framework in challenging regs ...........86 ..........127 ................■ Diversion of public funds ...■ Business costs of crime and violence ........81 .........................■ Firing costs* .....107 ........92 ....................01 4..........94 ...............................114 ...............126 ................02 Foreign market size index*..03 8......01 3..............106 ..19 Property rights .......28 ................

................1 Crime and theft ....................5 Transition 1–2 1 GCI 2008–2009 (out of 134).......... 2008..............2 2nd pillar: Infrastructure....................................9 Poor public health ..........................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............1 Poor work ethic in national labor force ...............................2 GDP (PPP) as share (%) of world total.............................1 11th pillar: Business sophistication...... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .........................1: Country/Economy Profiles Cameroon Key indicators GDP (PPP int'l $) per capita................................................2 4th pillar: Health and primary education ..............120 ....7 1st pillar: Institutions ......................9....................2 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...................................................... 1980–2008 Population (millions)...... 2008 ..........3..............................12......121 ...........0..................18........2 9th pillar: Technological readiness.5....................3.................................0.......................................................500 Cameroon Sub-Saharan Africa 2......... 2008 .....7 108 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........0 8th pillar: Financial market sophistication...........4 Factor driven Basic requirements............5 Tax rates ....................23... The bars in the figure show the responses weighted according to their rankings...............199.............................................................................89 .......2.............................06 2.................................7 Inflation .............4 12th pillar: Innovation.......107 .....................9 Policy instability.........................106 ........4....2..........0.........................................34 ...104 .............................................3.500 1..3....7..............5 3rd pillar: Macroeconomic stability.3......3..8 Financial market sophistication Goods market efficiency Labor market efficiency Cameroon Factor-driven economies The most problematic factors for doing business Access to financing .................111 ................8 Corruption.....................3......................................000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......................................2....................3..2.2 Inefficient government bureaucracy..2 GDP per capita (US$)....................9 GDP (US$ billions)...................0.116 .........2..118 .......................8 6th pillar: Goods market efficiency.......................2 Inadequately educated workforce............... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..................3....1 Tax regulations ..1...........5 GCI 2007–2008 (out of 131)............................1.............6 7th pillar: Labor market efficiency ...........................3.7 10th pillar: Market size...........20.........3 Foreign currency regulations..........119 ....9.............122 ..........................2.................... 2008.....102 .....................2....111 .....................................................114 .................119 .....................................................2....2 Restrictive labor regulations ......000 1....3 5th pillar: Higher education and training ............112 .......2.................................106 ...............4...3...................7 Inadequate supply of infrastructure .......3........24........................5 Government instability/coups ..............................

.............................................................................................................06 11.......11 1...........39 .04 1...............06 6.......88 .....115 ....83 ..............................110 ..............05 5....13 6..................................................................................................................03 6.......................................01 6...........01 3.................................122 ........................95 .....................96 .............1: Country/Economy Profiles Cameroon The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 109 .......110 .05 9..111 ........02 5......................07 11.......................................10 4......................83 ....08 Availability of latest technologies..........................08 8...............91 ..■ Tertiary enrollment* ..........■ Quality of management schools .................................................07 9............................57 ...116 ...12 1............01 2...77 .■ Ease of access to loans .................01 4..........................96 ..98 ........■ Production process sophistication .........■ Regulation of securities exchanges .........................................07 5.......05 Government surplus/deficit* ........05 7.............125 .............■ No.........................................................................................04 4.71 .......................................................■ Venture capital availability ....■ Public trust of politicians..............................................................■ Utility patents*...........................04 12.............03 3..■ Agricultural policy costs .............................................■ Internet access in schools ...........02 9......................................................■ Wastefulness of government spending....................16 ..............................15 1.............114 ....................................■ Extent of market dominance .............60 ...■ Effectiveness of anti-monopoly policy ..........08 7....................... of procedures required to start a business* .........................■ Prevalence of foreign ownership .................................02 8....88 ..............................107 .......■ Broadband Internet subscribers*....■ Quality of primary education........04 2.61 ...115 ..107 ...............................109 ....■ Business impact of rules on FDI ........■ Personal computers* .........12 6.....■ 12th pillar: Innovation * Hard data Note: For further details and explanation....47 ...02 2......■ Efficacy of corporate boards .■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6................106 ......................................07 4........................................■ Judicial independence .........................126 ...04 11...............09 4...........98 ..........06 1.........................104 ............................................................84 ....■ Ethical behavior of firms ...............................95 .■ National savings rate*....■ 7th pillar: Labor market efficiency 7...■ Business impact of tuberculosis.............14 6...87 ...................■ 11th pillar: Business sophistication 11......06 12..............................103 ..78 ............115 .............................08 Secondary enrollment* ......05 6............09 6......92 ........11 Business impact of malaria......................................■ HIV prevalence*...........................02 7.......115 ................................79 .02 6.................■ Malaria incidence* ..............................■ Local availability of research and training services .......■ Legal rights index*...............17 1.....111 ..................■ Life expectancy*.......The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..........................06 4..................................07 7..............................■ Mobile telephone subscriptions*..102 .........10 1......08 1...........■ Prevalence of trade barriers....■ Diversion of public funds .......................■ Primary enrollment* .....■ Government debt*............03 7........................■ Business impact of HIV/AIDS .........................05 4..■ 4........■ Internet users* ...........122 ..........07 1..............................................................08 6..............111 .......................................................................106 .........116 ......99 ...03 1...125 ...................................................05 1............■ Nature of competitive advantage ........07 6.......................................15 Intensity of local competition ...........41 .....115 .........109 .......05 11.....01 12..119 ........■ Financing through local equity market........■ Efficiency of legal framework in challenging regs ..............■ 9.....................05 8............07 Capacity for innovation .03 8......................119 ..95 .......08 11..■ Female participation in labor force*....................100 ...........■ State of cluster development .................16 1....07 8....................01 5........103 ..........05 2.............................04 3........111 ......................19 Property rights .........................08 4.123 ...■ Quality of roads...........■ Brain drain ................................80 ........121 ............09 Cooperation in labor-employer relations ....................■ Soundness of banks .....■ Willingness to delegate authority ..............................02 1..■ Quality of railroad infrastructure .........................................■ Quality of electricity supply ........................................■ Value chain breadth.....................................................■ Gov’t procurement of advanced tech products .......■ Hiring and firing practices ...............01 1............................06 8........86 ..■ Business costs of crime and violence ..................................03 9..........■ University-industry collaboration in R&D .....■ Restriction on capital flows ...01 8......95 .................................03 2...................70 .......126 ..........................84 ...■ Burden of customs procedures .....02 Foreign market size index*.........04 5.........103 .............13 1............14 1...52 ......■ Protection of minority shareholders’ interests ......■ Burden of government regulation..........................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.......■ Pay and productivity....■ FDI and technology transfer ...........................06 9..............■ Available seat kilometers* ...117 ..■ Laws relating to ICT....................03 12......■ Telephone lines* ......99 ...105 ...121 ..................11 6.........................127 .... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...................02 4..■ Organized crime.............. 2.■ Degree of customer orientation .......................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3........01 Domestic market size index* ......112 ......96 .................................113 ......................■ Buyer sophistication ..........09 Local supplier quantity ...........................................75 .......109 .........■ Tariff barriers* ..02 3..............■ Strength of auditing and reporting standards ................■ Firing costs* ...15 ................................................................03 5............■ Local supplier quality ......................■ Quality of scientific research institutions...08 Quality of overall infrastructure....09 Financial market sophistication.■ Inflation* ....................................■ Tuberculosis incidence*............................................................................■ Quality of the educational system ....................■ Infant mortality*.....■ Control of international distribution .....92 ...........102 .........■ Extent and effect of taxation .....................................................127 ...........................07 2...........87 .....119 .........■ Total tax rate* ..■ Reliability of police services.....108 ...........112 ..............■ Efficiency of legal framework in settling disputes..................■ Transparency of government policymaking .................03 4.93 ....................................■ Firm-level technology absorption............................■ Company spending on R&D .......128 .............06 5...97 ........05 12............■ 2...■ 9th pillar: Technological readiness 10th pillar: Market size 10..........90 .......................114 ..................01 9....■ Availability of scientists and engineers .................■ Reliance on professional management ...09 1.82 ................................06 2.■ Rigidity of employment*.....02 12..........95 ..............73 ...................................117 ..............■ Flexibility of wage determination.............18 1.■ Extent of marketing ............123 .........................01 11...................■ Intellectual property protection......126 ..88 ...................................102 .........................111 ........■ Interest rate spread* ............■ Quality of air transport infrastructure........105 ...........................................■ 10...■ 8.........89 ....90 .■ Education expenditure* ............■ Quality of math and science education ...01 7....■ Extent of staff training .......................................................■ Favoritism in decisions of government officials ......02 11...■ Quality of port infrastructure ......■ Business costs of terrorism............04 9....129 .115 ...........................................115 .................124 .......04 8.04 7.............76 .............04 6...122 ...............■ Strength of investor protection*........06 7..................■ 12...............................03 11....................10 6..............■ Time required to start a business* ......

.5.....................................5..........4 ...5 Government instability/coups ........................................................5.......2 GDP (US$ billions)...000 10......12 ................. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....................12 ........................9 3rd pillar: Macroeconomic stability.......1....................12........5........4 8th pillar: Financial market sophistication..........3.............1..................................0 GDP per capita (US$)...............1..2 GDP (PPP) as share (%) of world total...................7 ..........................................5.....................1 Corruption..............................................7 1st pillar: Institutions ...............................7 ...............................4............................................. 1980–2008 Population (millions)........6 10th pillar: Market size.....3 Inadequate supply of infrastructure .............................0 11th pillar: Business sophistication................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....17 ..16..................... 2008................2 Poor public health ................000 Canada OECD 30..0..45.12..5 6th pillar: Goods market efficiency......5...4...5................6 Inflation .......................................1 12th pillar: Innovation.........................22................. 2008 ....... 2008 ............................17 ...10 ..........3 Inefficient government bureaucracy...............8 Tax regulations ..6........................6 Crime and theft ..........14 .........................................................................................3 110 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...............1.4.............................428.................................................9 ...............................6..........5........................1: Country/Economy Profiles Canada Key indicators GDP (PPP int'l $) per capita.........0 Policy instability........16 .000 20........0................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..................3 Transition 1–2 1 GCI 2008–2009 (out of 134)....4 5th pillar: Higher education and training .... The bars in the figure show the responses weighted according to their rankings..........11 .............................................11 ........................................ 2008...33.........................5 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......8 Financial market sophistication Goods market efficiency Labor market efficiency Canada Innovation-driven economies The most problematic factors for doing business Access to financing .5...2 4th pillar: Health and primary education .................5......2.7 ........5...................89 40...........9 ..5...................6 Tax rates ................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .........5...........................................................3 Factor driven Basic requirements....................................10 ...0........................1 7th pillar: Labor market efficiency ......13..........................5...13 ..............5.1 Poor work ethic in national labor force ..........4 GCI 2007–2008 (out of 131)....511..................31 ..7 Restrictive labor regulations ..................................6 Foreign currency regulations....2 9th pillar: Technological readiness............................................5...........7 Inadequately educated workforce......................5 2nd pillar: Infrastructure....................0..............................................................

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................12 ........■
Intellectual property protection....................................18 ........■
Diversion of public funds .............................................19 ........■
Public trust of politicians..............................................23 ........■
Judicial independence .................................................11 ........■
Favoritism in decisions of government officials ..........15 ........■
Wastefulness of government spending.......................29 ........■
Burden of government regulation................................42 ........■
Efficiency of legal framework in settling disputes.......16 ........■
Efficiency of legal framework in challenging regs .......16 ........■
Transparency of government policymaking .................14 ........■
Business costs of terrorism.........................................74 ........■
Business costs of crime and violence .........................38 ........■
Organized crime...........................................................40 ........■
Reliability of police services.........................................11 ........■
Ethical behavior of firms ..............................................10 ........■
Strength of auditing and reporting standards ................7 ........■
Efficacy of corporate boards ..........................................4 ........■
Protection of minority shareholders’ interests ..............8 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................13 ........■
Quality of roads............................................................21 ........■
Quality of railroad infrastructure ..................................15 ........■
Quality of port infrastructure........................................14 ........■
Quality of air transport infrastructure...........................25 ........■
Available seat kilometers* .............................................9 ........■
Quality of electricity supply .........................................15 ........■
Telephone lines* ..........................................................10 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................39 ........■
National savings rate*..................................................58 ........■
Inflation* ........................................................................3 ........■
Interest rate spread* ...................................................28 ........■
Government debt*.....................................................108 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria............................................1 ........■
Malaria incidence* .........................................................1 ........■
Business impact of tuberculosis..................................16 ........■
Tuberculosis incidence*.................................................5 ........■
Business impact of HIV/AIDS ......................................29 ........■
HIV prevalence*...........................................................74 ........■
Infant mortality*...........................................................26 ........■
Life expectancy*............................................................7 ........■
Quality of primary education........................................10 ........■
Primary enrollment* ......................................................7 ........■
Education expenditure* ...............................................47 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................24 ........■
Extent of market dominance .......................................13 ........■
Effectiveness of anti-monopoly policy .........................19 ........■
Extent and effect of taxation .......................................65 ........■
Total tax rate* ..............................................................75 ........■
No. of procedures required to start a business* ...........1 ........■
Time required to start a business* ................................6 ........■
Agricultural policy costs ...............................................41 ........■
Prevalence of trade barriers.........................................45 ........■
Tariff barriers* ..............................................................36 ........■
Prevalence of foreign ownership .................................22 ........■
Business impact of rules on FDI .................................51 ........■
Burden of customs procedures ...................................31 ........■
Degree of customer orientation ..................................18 ........■
Buyer sophistication ....................................................14 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................31 ........■
Flexibility of wage determination.................................29 ........■
Rigidity of employment*................................................7 ........■
Hiring and firing practices ............................................21 ........■
Firing costs* ................................................................52 ........■
Pay and productivity.....................................................26 ........■
Reliance on professional management .........................9 ........■
Brain drain ....................................................................14 ........■
Female participation in labor force*.............................22 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication......................................3 ........■
Financing through local equity market.........................17 ........■
Ease of access to loans ...............................................25 ........■
Venture capital availability ............................................18 ........■
Restriction on capital flows .........................................37 ........■
Strength of investor protection*....................................5 ........■
Soundness of banks ......................................................1 ........■
Regulation of securities exchanges .............................21 ........■
Legal rights index*.......................................................58 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies...................................9 ........■
Firm-level technology absorption.................................21 ........■
Laws relating to ICT.....................................................12 ........■
FDI and technology transfer ..........................................9 ........■
Mobile telephone subscriptions*.................................92 ........■
Internet users* ............................................................12 ........■
Personal computers* .....................................................1 ........■
Broadband Internet subscribers*.................................10 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................21 ........■
Tertiary enrollment* .....................................................25 ........■
Quality of the educational system .................................5 ........■
Quality of math and science education .......................14 ........■
Quality of management schools ....................................2 ........■
Internet access in schools ...........................................12 ........■
Local availability of research and training services ......11 ........■
Extent of staff training .................................................12 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ......................................14 ........■
10.02 Foreign market size index*..........................................15 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................17 ........■
Local supplier quality .....................................................8 ........■
State of cluster development ........................................8 ........■
Nature of competitive advantage ................................48 ........■
Value chain breadth......................................................38 ........■
Control of international distribution .............................33 ........■
Production process sophistication ...............................20 ........■
Extent of marketing .....................................................10 ........■
Willingness to delegate authority ................................10 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................20 ........■
Quality of scientific research institutions.....................11 ........■
Company spending on R&D ........................................22 ........■
University-industry collaboration in R&D .......................9 ........■
Gov’t procurement of advanced tech products ...........25 ........■
Availability of scientists and engineers ..........................6 ........■
Utility patents*.............................................................10 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Canada

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

111

2.1: Country/Economy Profiles

Chad
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008.......................................11.1
GDP (US$ billions), 2008.............................................8.4
GDP per capita (US$), 2008 ...................................862.3
GDP (PPP) as share (%) of world total, 2008 .......0.02

2,000

Chad

Sub-Saharan Africa

1,500
1,000
500
0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.......................................................131 ......2.9

Transition
1–2

1

GCI 2008–2009 (out of 134)................................................134 ........2.8
GCI 2007–2008 (out of 131)................................................131 ........2.8

Factor
driven

Basic requirements...........................................................131 ........2.9
1st pillar: Institutions .........................................................131 ........2.7
2nd pillar: Infrastructure...................................................133 ........1.9
3rd pillar: Macroeconomic stability..................................82 ........4.5
4th pillar: Health and primary education .......................133 ........2.6

112

2

Transition
2–3

3

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers........................................................131 ........2.8
5th pillar: Higher education and training .......................133 ........2.2
6th pillar: Goods market efficiency.................................133 ........2.9
7th pillar: Labor market efficiency ..................................102 ........4.0
8th pillar: Financial market sophistication.....................131 ........2.8
9th pillar: Technological readiness.................................127 ........2.4
10th pillar: Market size......................................................116 ........2.5

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..........................126 ........2.8
11th pillar: Business sophistication................................129 ........3.1
12th pillar: Innovation........................................................120 ........2.6

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

Chad

Factor-driven economies

The most problematic factors for doing business
Corruption.......................................................................19.6
Access to financing ......................................................16.3
Government instability/coups .......................................9.8
Tax regulations ................................................................8.8
Inadequate supply of infrastructure ............................8.0
Policy instability...............................................................8.0
Tax rates ...........................................................................6.5
Crime and theft ................................................................5.3
Inadequately educated workforce...............................4.8
Inefficient government bureaucracy...........................3.3
Poor work ethic in national labor force ......................2.6
Inflation .............................................................................2.5
Restrictive labor regulations .........................................2.0
Poor public health ...........................................................2.0
Foreign currency regulations........................................0.4
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights ...........................................................130 ........■
Intellectual property protection..................................127 ........■
Diversion of public funds ...........................................132 ........■
Public trust of politicians............................................110 ........■
Judicial independence ...............................................125 ........■
Favoritism in decisions of government officials ........116 ........■
Wastefulness of government spending.....................124 ........■
Burden of government regulation................................79 ........■
Efficiency of legal framework in settling disputes.....113 ........■
Efficiency of legal framework in challenging regs .....107 ........■
Transparency of government policymaking ...............129 ........■
Business costs of terrorism.......................................115 ........■
Business costs of crime and violence .......................113 ........■
Organized crime.........................................................126 ........■
Reliability of police services.......................................128 ........■
Ethical behavior of firms ............................................126 ........■
Strength of auditing and reporting standards ............133 ........■
Efficacy of corporate boards ......................................129 ........■
Protection of minority shareholders’ interests ..........114 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure..................................131 ........■
Quality of roads..........................................................128 ........■
Quality of railroad infrastructure..................................n/a
Quality of port infrastructure .....................................125 ........■
Quality of air transport infrastructure.........................130 ........■
Available seat kilometers* .........................................126 ........■
Quality of electricity supply .......................................132 ........■
Telephone lines* ........................................................130 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .........................................9 ........■
National savings rate*................................................128 ........■
Inflation* ......................................................................66 ........■
Interest rate spread* .................................................111 ........■
Government debt*.......................................................58 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria........................................129 ........■
Malaria incidence* .....................................................129 ........■
Business impact of tuberculosis................................123 ........■
Tuberculosis incidence*.............................................115 ........■
Business impact of HIV/AIDS ....................................124 ........■
HIV prevalence*.........................................................120 ........■
Infant mortality*.........................................................133 ........■
Life expectancy*........................................................130 ........■
Quality of primary education......................................122 ........■
Primary enrollment* ..................................................129 ........■
Education expenditure* .............................................126 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ....................................133 ........■
Extent of market dominance .....................................117 ........■
Effectiveness of anti-monopoly policy .......................126 ........■
Extent and effect of taxation .....................................117 ........■
Total tax rate* ............................................................110 ........■
No. of procedures required to start a business* .......129 ........■
Time required to start a business* ............................120 ........■
Agricultural policy costs .............................................111 ........■
Prevalence of trade barriers.......................................129 ........■
Tariff barriers* ............................................................124 ........■
Prevalence of foreign ownership ...............................128 ........■
Business impact of rules on FDI ...............................129 ........■
Burden of customs procedures .................................132 ........■
Degree of customer orientation ................................130 ........■
Buyer sophistication ..................................................132 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ....................130 ........■
Flexibility of wage determination.................................49 ........■
Rigidity of employment*..............................................96 ........■
Hiring and firing practices ............................................71 ........■
Firing costs* ................................................................66 ........■
Pay and productivity...................................................115 ........■
Reliance on professional management .....................133 ........■
Brain drain ..................................................................119 ........■
Female participation in labor force*.............................10 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication..................................129 ........■
Financing through local equity market.......................127 ........■
Ease of access to loans .............................................127 ........■
Venture capital availability ..........................................123 ........■
Restriction on capital flows .......................................130 ........■
Strength of investor protection*................................100 ........■
Soundness of banks ..................................................124 ........■
Regulation of securities exchanges ...........................129 ........■
Legal rights index*.......................................................98 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ..............................................130 ........■
Tertiary enrollment* ...................................................131 ........■
Quality of the educational system .............................109 ........■
Quality of math and science education .....................110 ........■
Quality of management schools ................................124 ........■
Internet access in schools .........................................131 ........■
Local availability of research and training services ....127 ........■
Extent of staff training ...............................................130 ........■

9th pillar: Technological readiness
9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies...............................131 ........■
Firm-level technology absorption...............................128 ........■
Laws relating to ICT...................................................112 ........■
FDI and technology transfer ......................................130 ........■
Mobile telephone subscriptions*...............................126 ........■
Internet users* ..........................................................125 ........■
Personal computers* .................................................128 ........■
Broadband Internet subscribers*................................n/a

10th pillar: Market size
10.01 Domestic market size index* ....................................120 ........■
10.02 Foreign market size index*........................................100 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................97 ........■
Local supplier quality .................................................132 ........■
State of cluster development ....................................120 ........■
Nature of competitive advantage ................................86 ........■
Value chain breadth......................................................97 ........■
Control of international distribution ...........................129 ........■
Production process sophistication .............................133 ........■
Extent of marketing ...................................................132 ........■
Willingness to delegate authority ..............................129 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ..............................................111 ........■
Quality of scientific research institutions...................122 ........■
Company spending on R&D ........................................91 ........■
University-industry collaboration in R&D ...................119 ........■
Gov’t procurement of advanced tech products .........107 ........■
Availability of scientists and engineers ......................114 ........■
Utility patents*.............................................................84 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Chad

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

113

2.1: Country/Economy Profiles

Chile
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008.......................................16.8
GDP (US$ billions), 2008.........................................169.6
GDP per capita (US$), 2008 ..............................10,123.8
GDP (PPP) as share (%) of world total, 2008 .......0.36

15,000

Chile

Latin America and Caribbean

10,000

5,000

0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.........................................................30 ......4.7

Transition
1–2

1

GCI 2008–2009 (out of 134)..................................................28 ........4.7
GCI 2007–2008 (out of 131)..................................................26 ........4.8

Factor
driven

Basic requirements.............................................................32 ........5.1
1st pillar: Institutions ...........................................................35 ........4.8
2nd pillar: Infrastructure.....................................................30 ........4.9
3rd pillar: Macroeconomic stability..................................19 ........5.5
4th pillar: Health and primary education .........................69 ........5.4

114

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................33 ........4.6
5th pillar: Higher education and training .........................45 ........4.4
6th pillar: Goods market efficiency...................................26 ........4.8
7th pillar: Labor market efficiency ....................................41 ........4.7
8th pillar: Financial market sophistication.......................32 ........4.7
9th pillar: Technological readiness...................................42 ........4.3
10th pillar: Market size........................................................44 ........4.4

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................43 ........4.0
11th pillar: Business sophistication..................................39 ........4.5
12th pillar: Innovation..........................................................49 ........3.4

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

Chile

Economies in transition from 2 to 3

The most problematic factors for doing business
Restrictive labor regulations .......................................28.9
Inefficient government bureaucracy.........................20.9
Inadequately educated workforce.............................13.0
Tax regulations ................................................................8.2
Access to financing ........................................................6.4
Tax rates ...........................................................................5.7
Poor work ethic in national labor force ......................4.1
Inadequate supply of infrastructure ............................3.5
Corruption.........................................................................3.5
Crime and theft ................................................................1.9
Poor public health ...........................................................1.4
Inflation .............................................................................1.3
Foreign currency regulations........................................1.1
Policy instability...............................................................0.0
Government instability/coups .......................................0.0
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................31 ........■
Intellectual property protection....................................65 ........■
Diversion of public funds .............................................52 ........■
Public trust of politicians..............................................47 ........■
Judicial independence .................................................43 ........■
Favoritism in decisions of government officials ..........41 ........■
Wastefulness of government spending.......................40 ........■
Burden of government regulation................................41 ........■
Efficiency of legal framework in settling disputes.......26 ........■
Efficiency of legal framework in challenging regs .......29 ........■
Transparency of government policymaking .................18 ........■
Business costs of terrorism.........................................25 ........■
Business costs of crime and violence .........................80 ........■
Organized crime...........................................................29 ........■
Reliability of police services.........................................10 ........■
Ethical behavior of firms ..............................................21 ........■
Strength of auditing and reporting standards ..............24 ........■
Efficacy of corporate boards ........................................11 ........■
Protection of minority shareholders’ interests ............29 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................23 ........■
Quality of roads............................................................15 ........■
Quality of railroad infrastructure ..................................76 ........■
Quality of port infrastructure........................................27 ........■
Quality of air transport infrastructure...........................19 ........■
Available seat kilometers* ...........................................40 ........■
Quality of electricity supply .........................................37 ........■
Telephone lines* ..........................................................62 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................16 ........■
National savings rate*..................................................62 ........■
Inflation* ......................................................................72 ........■
Interest rate spread* ...................................................70 ........■
Government debt*.........................................................6 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria............................................1 ........■
Malaria incidence* .........................................................1 ........■
Business impact of tuberculosis..................................20 ........■
Tuberculosis incidence*...............................................24 ........■
Business impact of HIV/AIDS ......................................35 ........■
HIV prevalence*...........................................................69 ........■
Infant mortality*...........................................................41 ........■
Life expectancy*..........................................................30 ........■
Quality of primary education......................................118 ........■
Primary enrollment* ....................................................61 ........■
Education expenditure* ...............................................93 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................23 ........■
Extent of market dominance .......................................63 ........■
Effectiveness of anti-monopoly policy .........................28 ........■
Extent and effect of taxation .......................................42 ........■
Total tax rate* ..............................................................16 ........■
No. of procedures required to start a business* .........75 ........■
Time required to start a business* ..............................75 ........■
Agricultural policy costs .................................................4 ........■
Prevalence of trade barriers...........................................2 ........■
Tariff barriers* ..............................................................54 ........■
Prevalence of foreign ownership ...................................7 ........■
Business impact of rules on FDI .................................15 ........■
Burden of customs procedures .....................................5 ........■
Degree of customer orientation ..................................47 ........■
Buyer sophistication ....................................................26 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................52 ........■
Flexibility of wage determination.................................20 ........■
Rigidity of employment*..............................................35 ........■
Hiring and firing practices ............................................98 ........■
Firing costs* ................................................................81 ........■
Pay and productivity.....................................................34 ........■
Reliance on professional management .......................23 ........■
Brain drain ......................................................................8 ........■
Female participation in labor force*...........................108 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication....................................20 ........■
Financing through local equity market.........................14 ........■
Ease of access to loans ...............................................27 ........■
Venture capital availability ............................................30 ........■
Restriction on capital flows .........................................23 ........■
Strength of investor protection*..................................31 ........■
Soundness of banks ......................................................4 ........■
Regulation of securities exchanges .............................58 ........■
Legal rights index*.......................................................83 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies.................................32 ........■
Firm-level technology absorption.................................31 ........■
Laws relating to ICT.....................................................27 ........■
FDI and technology transfer ........................................21 ........■
Mobile telephone subscriptions*.................................67 ........■
Internet users* ............................................................53 ........■
Personal computers* ...................................................37 ........■
Broadband Internet subscribers*.................................47 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................57 ........■
Tertiary enrollment* .....................................................38 ........■
Quality of the educational system .............................107 ........■
Quality of math and science education .....................116 ........■
Quality of management schools ..................................17 ........■
Internet access in schools ...........................................38 ........■
Local availability of research and training services ......41 ........■
Extent of staff training .................................................39 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ......................................45 ........■
10.02 Foreign market size index*..........................................45 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................31 ........■
Local supplier quality ...................................................26 ........■
State of cluster development ......................................45 ........■
Nature of competitive advantage ................................90 ........■
Value chain breadth......................................................60 ........■
Control of international distribution .............................30 ........■
Production process sophistication ...............................34 ........■
Extent of marketing .....................................................20 ........■
Willingness to delegate authority ................................48 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................60 ........■
Quality of scientific research institutions.....................57 ........■
Company spending on R&D ........................................56 ........■
University-industry collaboration in R&D .....................41 ........■
Gov’t procurement of advanced tech products ...........54 ........■
Availability of scientists and engineers ........................23 ........■
Utility patents*.............................................................54 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Chile

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

115

2.1: Country/Economy Profiles

China
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008..................................1,336.3
GDP (US$ billions), 2008......................................4,401.6
GDP per capita (US$), 2008 ................................3,315.3
GDP (PPP) as share (%) of world total, 2008 .....11.40

6,000

China

East Asia and Pacific

4,000

2,000

0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.........................................................29 ......4.7

Transition
1–2

1

GCI 2008–2009 (out of 134)..................................................30 ........4.7
GCI 2007–2008 (out of 131)..................................................34 ........4.6

Factor
driven

Basic requirements.............................................................36 ........5.1
1st pillar: Institutions ...........................................................48 ........4.4
2nd pillar: Infrastructure.....................................................46 ........4.3
3rd pillar: Macroeconomic stability....................................8 ........5.9
4th pillar: Health and primary education .........................45 ........5.7

116

2

Transition
2–3

3

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................32 ........4.6
5th pillar: Higher education and training .........................61 ........4.1
6th pillar: Goods market efficiency...................................42 ........4.5
7th pillar: Labor market efficiency ....................................32 ........4.7
8th pillar: Financial market sophistication.......................81 ........4.1
9th pillar: Technological readiness...................................79 ........3.4
10th pillar: Market size..........................................................2 ........6.6

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................29 ........4.2
11th pillar: Business sophistication..................................38 ........4.5
12th pillar: Innovation..........................................................26 ........3.9

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

China

Efficiency-driven economies

The most problematic factors for doing business
Access to financing ......................................................16.8
Inefficient government bureaucracy.........................11.1
Tax regulations ................................................................9.6
Policy instability...............................................................9.3
Inadequate supply of infrastructure ............................8.5
Corruption.........................................................................7.4
Inadequately educated workforce...............................7.3
Tax rates ...........................................................................7.1
Inflation .............................................................................5.8
Restrictive labor regulations .........................................5.4
Poor work ethic in national labor force ......................5.2
Foreign currency regulations........................................3.6
Government instability/coups .......................................1.3
Poor public health ...........................................................0.9
Crime and theft ................................................................0.7
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................39 ........■
Intellectual property protection....................................45 ........■
Diversion of public funds .............................................55 ........■
Public trust of politicians..............................................26 ........■
Judicial independence .................................................62 ........■
Favoritism in decisions of government officials ..........35 ........■
Wastefulness of government spending.......................35 ........■
Burden of government regulation................................21 ........■
Efficiency of legal framework in settling disputes.......43 ........■
Efficiency of legal framework in challenging regs .......57 ........■
Transparency of government policymaking .................32 ........■
Business costs of terrorism.........................................66 ........■
Business costs of crime and violence .........................43 ........■
Organized crime...........................................................71 ........■
Reliability of police services.........................................49 ........■
Ethical behavior of firms ..............................................54 ........■
Strength of auditing and reporting standards ..............72 ........■
Efficacy of corporate boards ........................................92 ........■
Protection of minority shareholders’ interests ............71 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................66 ........■
Quality of roads............................................................50 ........■
Quality of railroad infrastructure ..................................27 ........■
Quality of port infrastructure........................................61 ........■
Quality of air transport infrastructure...........................80 ........■
Available seat kilometers* .............................................2 ........■
Quality of electricity supply .........................................61 ........■
Telephone lines* ..........................................................49 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................56 ........■
National savings rate*....................................................7 ........■
Inflation* ......................................................................46 ........■
Interest rate spread* ...................................................25 ........■
Government debt*.......................................................20 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria..........................................78 ........■
Malaria incidence* .......................................................78 ........■
Business impact of tuberculosis..................................70 ........■
Tuberculosis incidence*...............................................86 ........■
Business impact of HIV/AIDS ......................................49 ........■
HIV prevalence*...........................................................15 ........■
Infant mortality*...........................................................73 ........■
Life expectancy*..........................................................53 ........■
Quality of primary education........................................32 ........■
Primary enrollment* ......................................................6 ........■
Education expenditure* .............................................123 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................13 ........■
Extent of market dominance .......................................26 ........■
Effectiveness of anti-monopoly policy .........................50 ........■
Extent and effect of taxation .......................................32 ........■
Total tax rate* ............................................................124 ........■
No. of procedures required to start a business* .......117 ........■
Time required to start a business* ..............................99 ........■
Agricultural policy costs .................................................6 ........■
Prevalence of trade barriers.........................................69 ........■
Tariff barriers* ............................................................120 ........■
Prevalence of foreign ownership .................................98 ........■
Business impact of rules on FDI .................................23 ........■
Burden of customs procedures ...................................41 ........■
Degree of customer orientation ..................................71 ........■
Buyer sophistication ....................................................13 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................60 ........■
Flexibility of wage determination.................................53 ........■
Rigidity of employment*..............................................43 ........■
Hiring and firing practices ............................................77 ........■
Firing costs* ..............................................................109 ........■
Pay and productivity.....................................................12 ........■
Reliance on professional management .......................46 ........■
Brain drain ....................................................................39 ........■
Female participation in labor force*.............................20 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication....................................78 ........■
Financing through local equity market.........................66 ........■
Ease of access to loans ...............................................89 ........■
Venture capital availability ............................................38 ........■
Restriction on capital flows .......................................125 ........■
Strength of investor protection*..................................71 ........■
Soundness of banks ....................................................66 ........■
Regulation of securities exchanges .............................91 ........■
Legal rights index*.......................................................58 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies.................................87 ........■
Firm-level technology absorption.................................47 ........■
Laws relating to ICT.....................................................48 ........■
FDI and technology transfer ........................................77 ........■
Mobile telephone subscriptions*...............................104 ........■
Internet users* ............................................................72 ........■
Personal computers* ...................................................81 ........■
Broadband Internet subscribers*.................................52 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................89 ........■
Tertiary enrollment* .....................................................80 ........■
Quality of the educational system ...............................52 ........■
Quality of math and science education .......................35 ........■
Quality of management schools ..................................72 ........■
Internet access in schools ...........................................23 ........■
Local availability of research and training services ......47 ........■
Extent of staff training .................................................50 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ........................................2 ........■
10.02 Foreign market size index*............................................1 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................11 ........■
Local supplier quality ...................................................53 ........■
State of cluster development ......................................16 ........■
Nature of competitive advantage ................................61 ........■
Value chain breadth......................................................46 ........■
Control of international distribution .............................45 ........■
Production process sophistication ...............................50 ........■
Extent of marketing .....................................................46 ........■
Willingness to delegate authority ................................65 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................22 ........■
Quality of scientific research institutions.....................35 ........■
Company spending on R&D ........................................23 ........■
University-industry collaboration in R&D .....................23 ........■
Gov’t procurement of advanced tech products ...........13 ........■
Availability of scientists and engineers ........................36 ........■
Utility patents*.............................................................50 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

China

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

117

2.1: Country/Economy Profiles

Colombia
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008.......................................46.7
GDP (US$ billions), 2008.........................................240.7
GDP per capita (US$), 2008 ................................4,985.2
GDP (PPP) as share (%) of world total, 2008 .......0.58

10,000

Colombia

Latin America and Caribbean

8,000
6,000
4,000
2,000

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.........................................................69 ......4.1

Transition
1–2

1

GCI 2008–2009 (out of 134)..................................................74 ........4.0
GCI 2007–2008 (out of 131)..................................................69 ........4.0

Factor
driven

Basic requirements.............................................................83 ........4.1
1st pillar: Institutions .........................................................101 ........3.4
2nd pillar: Infrastructure.....................................................83 ........3.2
3rd pillar: Macroeconomic stability..................................72 ........4.6
4th pillar: Health and primary education .........................72 ........5.3

118

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................64 ........4.1
5th pillar: Higher education and training .........................71 ........3.9
6th pillar: Goods market efficiency...................................88 ........4.0
7th pillar: Labor market efficiency ....................................78 ........4.3
8th pillar: Financial market sophistication.......................78 ........4.1
9th pillar: Technological readiness...................................66 ........3.6
10th pillar: Market size........................................................31 ........4.6

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................62 ........3.7
11th pillar: Business sophistication..................................60 ........4.2
12th pillar: Innovation..........................................................63 ........3.2

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

Colombia

Efficiency-driven economies

The most problematic factors for doing business
Corruption.......................................................................12.4
Access to financing ......................................................12.3
Tax rates .........................................................................10.3
Inefficient government bureaucracy.........................10.1
Tax regulations ................................................................9.3
Inadequate supply of infrastructure ............................7.8
Restrictive labor regulations .........................................7.8
Inflation .............................................................................6.7
Policy instability...............................................................5.1
Inadequately educated workforce...............................4.5
Crime and theft ................................................................3.7
Poor work ethic in national labor force ......................3.7
Foreign currency regulations........................................3.6
Government instability/coups .......................................1.5
Poor public health ...........................................................1.2
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................83 ........■
Intellectual property protection....................................94 ........■
Diversion of public funds .............................................99 ........■
Public trust of politicians..............................................88 ........■
Judicial independence .................................................76 ........■
Favoritism in decisions of government officials ........111 ........■
Wastefulness of government spending.......................85 ........■
Burden of government regulation..............................107 ........■
Efficiency of legal framework in settling disputes.......85 ........■
Efficiency of legal framework in challenging regs .......72 ........■
Transparency of government policymaking .................52 ........■
Business costs of terrorism.......................................133 ........■
Business costs of crime and violence .......................126 ........■
Organized crime.........................................................131 ........■
Reliability of police services.........................................69 ........■
Ethical behavior of firms ..............................................68 ........■
Strength of auditing and reporting standards ..............91 ........■
Efficacy of corporate boards ........................................70 ........■
Protection of minority shareholders’ interests ............87 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................83 ........■
Quality of roads..........................................................101 ........■
Quality of railroad infrastructure ..................................99 ........■
Quality of port infrastructure .....................................107 ........■
Quality of air transport infrastructure...........................81 ........■
Available seat kilometers* ...........................................45 ........■
Quality of electricity supply .........................................58 ........■
Telephone lines* ..........................................................76 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................82 ........■
National savings rate*..................................................64 ........■
Inflation* ......................................................................52 ........■
Interest rate spread* ...................................................87 ........■
Government debt*.......................................................78 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria..........................................90 ........■
Malaria incidence* .....................................................101 ........■
Business impact of tuberculosis..................................84 ........■
Tuberculosis incidence*...............................................57 ........■
Business impact of HIV/AIDS ....................................100 ........■
HIV prevalence*...........................................................85 ........■
Infant mortality*...........................................................66 ........■
Life expectancy*..........................................................45 ........■
Quality of primary education........................................75 ........■
Primary enrollment* ..................................................100 ........■
Education expenditure* ...............................................43 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................78 ........■
Extent of market dominance .....................................113 ........■
Effectiveness of anti-monopoly policy .........................65 ........■
Extent and effect of taxation .....................................120 ........■
Total tax rate* ............................................................123 ........■
No. of procedures required to start a business* .........75 ........■
Time required to start a business* ..............................94 ........■
Agricultural policy costs ...............................................63 ........■
Prevalence of trade barriers.......................................128 ........■
Tariff barriers* ............................................................101 ........■
Prevalence of foreign ownership .................................89 ........■
Business impact of rules on FDI .................................94 ........■
Burden of customs procedures ...................................77 ........■
Degree of customer orientation ..................................30 ........■
Buyer sophistication ....................................................70 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................48 ........■
Flexibility of wage determination.................................60 ........■
Rigidity of employment*..............................................35 ........■
Hiring and firing practices ............................................79 ........■
Firing costs* ................................................................89 ........■
Pay and productivity...................................................110 ........■
Reliance on professional management .......................81 ........■
Brain drain ....................................................................82 ........■
Female participation in labor force*.............................49 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication....................................62 ........■
Financing through local equity market.........................77 ........■
Ease of access to loans ...............................................60 ........■
Venture capital availability ............................................76 ........■
Restriction on capital flows .......................................115 ........■
Strength of investor protection*..................................24 ........■
Soundness of banks ....................................................54 ........■
Regulation of securities exchanges .............................81 ........■
Legal rights index*.......................................................71 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies.................................96 ........■
Firm-level technology absorption.................................95 ........■
Laws relating to ICT.....................................................50 ........■
FDI and technology transfer ........................................75 ........■
Mobile telephone subscriptions*.................................66 ........■
Internet users* ............................................................46 ........■
Personal computers* ...................................................70 ........■
Broadband Internet subscribers*.................................61 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................77 ........■
Tertiary enrollment* .....................................................68 ........■
Quality of the educational system ...............................73 ........■
Quality of math and science education .......................86 ........■
Quality of management schools ..................................61 ........■
Internet access in schools ...........................................81 ........■
Local availability of research and training services ......59 ........■
Extent of staff training ...............................................105 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ......................................26 ........■
10.02 Foreign market size index*..........................................55 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................35 ........■
Local supplier quality ...................................................48 ........■
State of cluster development ......................................51 ........■
Nature of competitive advantage ................................71 ........■
Value chain breadth......................................................56 ........■
Control of international distribution .............................63 ........■
Production process sophistication ...............................71 ........■
Extent of marketing .....................................................82 ........■
Willingness to delegate authority ................................67 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................62 ........■
Quality of scientific research institutions.....................87 ........■
Company spending on R&D ........................................72 ........■
University-industry collaboration in R&D .....................36 ........■
Gov’t procurement of advanced tech products ...........44 ........■
Availability of scientists and engineers ........................89 ........■
Utility patents*.............................................................70 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Colombia

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

119

............000 3...........................................5 GDP (US$ billions)......4 2nd pillar: Infrastructure..4...............................4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......8 GDP per capita (US$).5 Inflation ..............4....9 Access to financing ..............4...6 Inadequate supply of infrastructure ..3.........................................79 ....... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............................44 ...........07 12....................................16...................47 ......4....................... 2008 ..................29 ........................7 8th pillar: Financial market sophistication....1 4th pillar: Health and primary education ....55 .........6............. 2008...........0............................1 Government instability/coups .....2 Inadequately educated workforce.......................4.............................58 ..............................4 1st pillar: Institutions ......1 5th pillar: Higher education and training ...........63 ........2......................................1 11th pillar: Business sophistication..........1 Factor driven Basic requirements............................4.....0........4..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.........................77 ........................................................47 ...................................4 Tax regulations .....................59 ..................1..............6..................5............4............4......................4 7th pillar: Labor market efficiency .................................................................0 Tax rates ..9 Policy instability...........8.......................................34 .... 2008.....3.............62 ......................4 Poor work ethic in national labor force ......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.................2 GCI 2007–2008 (out of 131)....... 2008 ........36 ................2 3rd pillar: Macroeconomic stability........................4.........................579...7...4 6th pillar: Goods market efficiency.........5 12th pillar: Innovation.....................15.....................................3....101 ...........0 120 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................000 6............................................................................4...82 ..3 Foreign currency regulations............9 GDP (PPP) as share (%) of world total...................................................................................41 ............1: Country/Economy Profiles Costa Rica Key indicators GDP (PPP int'l $) per capita......3.......3 Restrictive labor regulations ....................0........24.....4..6...........7 Financial market sophistication Goods market efficiency Labor market efficiency Costa Rica Efficiency-driven economies The most problematic factors for doing business Inefficient government bureaucracy....................................................................1 9th pillar: Technological readiness........62 ........................................................................37 ....000 Costa Rica Latin America and Caribbean 9..2.......4.................................................1 Corruption.....0 Poor public health ............3.......1............2 Transition 1–2 1 GCI 2008–2009 (out of 134).....7 10th pillar: Market size...3..........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......29.4 Crime and theft .. The bars in the figure show the responses weighted according to their rankings........................................... 1980–2008 Population (millions)..................................4......4.........

.........02 1......04 6.........06 6....38 ..........28 ...............................30 .........63 ..■ Rigidity of employment*................................■ Agricultural policy costs ..59 .......74 ..........................04 5....09 Local supplier quantity .............05 4.....................................................37 ............01 4..■ Extent of marketing ..........................01 2.............................77 ........■ Prevalence of foreign ownership .............■ Telephone lines* ................■ Quality of scientific research institutions.......................................■ FDI and technology transfer ............................................04 4.........92 .........■ Firing costs* ................................................................06 12...............................■ Hiring and firing practices .........................■ Utility patents*...........47 .■ Quality of railroad infrastructure ............03 2.....................................110 .............................................................................................................13 6....07 Capacity for innovation .......................■ Business impact of tuberculosis...........01 9.....■ Female participation in labor force*.04 8......................16 1................■ Available seat kilometers* ....28 ..10 1.............■ Infant mortality*..............02 4..01 6...................107 .............56 ......... of procedures required to start a business* ..............03 8..........................04 3............27 ..............................■ Efficacy of corporate boards ........01 11..49 ......................34 .............................■ Quality of port infrastructure ..................110 ...............................................45 ...............58 ..09 6..............05 5................................71 ............■ Degree of customer orientation .08 1.........05 12...........■ Venture capital availability ..........16 ..29 ......04 9.......04 2............63 .................08 6.............38 ...................08 11.........06 11......■ Quality of electricity supply .....................■ Organized crime.....................................55 ...........08 7.....................................1: Country/Economy Profiles Costa Rica The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 121 ...............06 2.............................102 ............................■ Personal computers* .....................08 Quality of overall infrastructure.....■ Mobile telephone subscriptions*.......70 ........................25 .............51 ..........07 5..19 Property rights ......................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.......■ Quality of air transport infrastructure.■ Ease of access to loans ..............................................■ Value chain breadth.....53 ..........................63 .................■ Malaria incidence* .....■ Production process sophistication ......05 2...........06 5........................41 ..01 5.....................................................05 9..............................................29 .............20 .......■ Brain drain ......■ Willingness to delegate authority ......71 ......09 Cooperation in labor-employer relations ....................■ Tariff barriers* .............39 ...34 .03 12.........05 8..........................■ 12th pillar: Innovation * Hard data Note: For further details and explanation............■ Internet access in schools .........32 ..............■ Ethical behavior of firms ..........49 ...................................................................................07 8.....40 ..........................114 ...........■ 11th pillar: Business sophistication 11.................. 2...78 .............03 5............37 ..................■ Effectiveness of anti-monopoly policy .08 4...................■ Legal rights index*................04 7....■ 12.......04 12...............11 6....■ Strength of investor protection*........................■ Soundness of banks ....85 ........02 12..54 .....28 ..■ 9.......................106 ..54 ..............12 6.....................■ Strength of auditing and reporting standards ................................74 .11 Business impact of malaria...............■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.........................58 .......................................................07 1......40 ................................02 2................03 6............01 3....................■ Efficiency of legal framework in settling disputes..48 .....................30 ...■ Extent of market dominance .■ Laws relating to ICT..........................07 9.......■ Company spending on R&D .........52 .....09 4....■ Quality of roads.........■ Quality of math and science education ................17 1..11 1......■ Burden of customs procedures ......53 ......76 ...................51 ..■ Inflation* ..........03 1....49 ...........07 11.......................■ HIV prevalence*....................■ Business costs of terrorism.■ Intellectual property protection.....................................13 ...........................06 4..32 ....■ Regulation of securities exchanges .......■ Nature of competitive advantage ....■ Buyer sophistication ...■ 7th pillar: Labor market efficiency 7.....................................74 .........■ 2..14 6........■ Public trust of politicians.............■ Pay and productivity............71 ............................................................05 6...................06 1......■ Government debt*..03 7............■ Local supplier quality .....................13 1........07 7.■ Protection of minority shareholders’ interests ...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..........■ Diversion of public funds .................41 .......70 .........■ Efficiency of legal framework in challenging regs .....................08 8..........62 ...................104 ...................■ Education expenditure* ..............■ National savings rate*.......07 6..............................................01 8........■ Control of international distribution ....................15 Intensity of local competition .....................................................33 .........................11 .....■ Reliability of police services...............................22 ........02 8.......07 4...............................................■ Internet users* .....................■ Extent of staff training ...05 1.....................................■ Business costs of crime and violence ...........................................14 1..........66 ............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.........09 Financial market sophistication.......................................................................38 ..................51 ......................................54 ...02 9.................................■ Business impact of HIV/AIDS ...........................■ Extent and effect of taxation ................70 ........■ State of cluster development ...................................■ 10........10 6....................76 .................................03 11..................06 8................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......72 ..................09 1.44 ............................01 7................................................08 Secondary enrollment* .■ Quality of management schools ................................................................■ 9th pillar: Technological readiness 10th pillar: Market size 10......................06 7...........■ Local availability of research and training services ..■ Firm-level technology absorption...02 Foreign market size index*.....................................76 ......16 .....................40 ............01 1....................■ Burden of government regulation....................................43 .............05 11..........................■ Wastefulness of government spending................■ Transparency of government policymaking .■ Availability of scientists and engineers ....04 1...■ Interest rate spread* ............27 .........................■ 8........03 9..................98 ........................67 .....■ Life expectancy*.....7 ...22 ..............05 Government surplus/deficit* ....■ Tuberculosis incidence*....62 ..................■ Time required to start a business* .....33 ......................40 ..........................■ Restriction on capital flows .......■ Reliance on professional management ..........91 ............02 11.........■ 4...........30 ............................................12 1......■ University-industry collaboration in R&D ....................................■ Broadband Internet subscribers*......128 ....■ Total tax rate* .........07 2...............63 ...02 3.........03 3.....08 Availability of latest technologies..................01 12.....107 ..63 .107 ..........60 .................■ Quality of the educational system ....................03 4..........................■ Flexibility of wage determination.............05 7.................................................................04 11........02 5............■ Gov’t procurement of advanced tech products .......................10 4........1 .............44 ..■ Financing through local equity market..........39 ......■ Primary enrollment* ...06 9...........................79 ....18 1........................43 ..................................■ Quality of primary education..02 6...............■ Tertiary enrollment* ..........................■ No.....................................26 .01 Domestic market size index* .....■ Prevalence of trade barriers..15 1.............................122 .......76 ..........114 ......■ Judicial independence ..........■ Business impact of rules on FDI ..48 .....................................55 .......................37 ..............................■ Favoritism in decisions of government officials ............02 7.

..... The bars in the figure show the responses weighted according to their rankings....9 2nd pillar: Infrastructure.......92 .....................................0 10th pillar: Market size.......................................................1 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......0..9 Restrictive labor regulations .0............................................7 Access to financing ...1 122 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers...................................5 GCI 2007–2008 (out of 131)...................................2..3.....2 11th pillar: Business sophistication..2 GDP (PPP) as share (%) of world total.............8 Tax regulations ..........................................3..........................105 ......................1 Inefficient government bureaucracy.3........7...................................... 2008.....6 12th pillar: Innovation.......23......4................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...3.........1 Inadequately educated workforce..........................................n/a Factor driven Basic requirements...........3..............4 4th pillar: Health and primary education ......4 5th pillar: Higher education and training .................2...4 Poor public health ...........4 9th pillar: Technological readiness...................05 2........20.......................................................0 8th pillar: Financial market sophistication...........2.....3.......................................................4 Crime and theft .......................................116 .......5 1st pillar: Institutions .....3 Foreign currency regulations...132.......................3................................... 1980–2008 Population (millions)...1..........................6 GDP (US$ billions)........000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...........2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.6 Tax rates ............2.....109 ...........................................5 3rd pillar: Macroeconomic stability......4 Transition 1–2 1 GCI 2008–2009 (out of 134)...........97 .......17..000 Côte d’Ivoire Sub-Saharan Africa 1...............................................3........2 Poor work ethic in national labor force ...............................4....................................98 ......................4.........................1: Country/Economy Profiles Côte d’Ivoire Key indicators GDP (PPP int'l $) per capita........3........112 ..................0.89 ......................95 ..............3.................115 ..............5 GDP per capita (US$).6........6 Government instability/coups ............................................ 2008..8 Financial market sophistication Goods market efficiency Labor market efficiency Côte d’Ivoire Factor-driven economies The most problematic factors for doing business Corruption....104 .....................500 1.............110 ..... 2008 ....................19.................................1 6th pillar: Goods market efficiency................0 Inadequate supply of infrastructure ..............................................................9...........128 ..... 2008 ...17..............3..........................4.......................................113 ...n/a ..............................3........2...................................................3.............................3.......................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...0..........73 .......................3.................0 Policy instability...........121 ...........7 7th pillar: Labor market efficiency ....6 Inflation ............................127 .....

■ Control of international distribution ..............07 2...68 .........05 5.........................121 ...84 .105 ......06 12.........06 1.........................................................■ Quality of math and science education ................................06 5.■ 10..03 5...103 .........■ Reliability of police services...............115 .......05 7...................90 ......................71 .......84 .........■ Available seat kilometers* .04 7.....02 1....................113 .......................70 ..........■ 2......75 ..................................05 1...71 ..........■ Life expectancy*....................■ Transparency of government policymaking .................................................................90 ..■ Value chain breadth...01 Domestic market size index* ....02 9.......................13 1....14 6..99 ...................02 5.............................................99 ..........................■ Mobile telephone subscriptions*.■ Brain drain ..............................07 1..........112 ................ 2.............■ 7th pillar: Labor market efficiency 7..............113 ..133 ..107 .........93 ..............99 ......01 2................................■ Extent and effect of taxation .................................................05 9........01 1.................49 .................05 11.............09 Cooperation in labor-employer relations ..................■ Company spending on R&D ..........................................................117 .....■ Malaria incidence* ...................................03 2.............................124 .........126 ..........02 6..............................................................................................■ Nature of competitive advantage ..73 ........03 7...89 ..........................04 2................................................130 .■ 9th pillar: Technological readiness 10th pillar: Market size 10.50 ....■ Business impact of rules on FDI .........95 ...........60 ..■ Firm-level technology absorption....01 11.................................04 11.........■ Quality of port infrastructure..................■ Agricultural policy costs .......■ Tertiary enrollment* .....85 .........■ Rigidity of employment*.........127 ..........................27 .........70 .1: Country/Economy Profiles Côte d’Ivoire The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 123 .............................................01 7..................■ Strength of investor protection*..........97 ...............■ Internet users* ..■ Judicial independence .............................125 ...129 .........................................12 6................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......04 1....08 6...■ Financing through local equity market...............■ Business costs of crime and violence ......■ Buyer sophistication ...................10 4...........................129 ...............03 8.................■ Telephone lines* ...............................................■ Restriction on capital flows .....■ Local availability of research and training services .................■ Venture capital availability ..118 ...................................06 8...............................128 ...39 .................08 7.07 7..................................47 ........18 1......................■ Quality of railroad infrastructure ....02 12................................■ Extent of staff training ................■ Internet access in schools ....02 4.106 ..............................■ Quality of air transport infrastructure.........................................■ 11th pillar: Business sophistication 11...01 4...05 4...........93 ....■ Quality of scientific research institutions...............■ Efficiency of legal framework in challenging regs .......................02 8...02 3............92 .................................■ Wastefulness of government spending.............06 11...............66 ....................................■ Female participation in labor force*................■ Legal rights index*........................64 ......................................77 .......................75 ...................02 7.88 ............................03 9.......■ Business impact of tuberculosis......■ Efficacy of corporate boards .....■ Personal computers* ..................05 6....09 Financial market sophistication........05 12...........■ University-industry collaboration in R&D ..75 .........................................03 11....03 12............................■ Organized crime.............121 .....................11 Business impact of malaria.....04 12.■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..128 ..........01 8.....05 2.122 ..............................115 ...............■ Business costs of terrorism............................118 .92 .08 8.01 6..101 .........................■ Diversion of public funds ..08 Secondary enrollment* .........08 11............■ Inflation* ........................115 ...........58 ...69 .........08 4....■ Soundness of banks .........................................................................122 ...................07 4..............................................■ No......■ Quality of electricity supply ...........................83 ..........07 6...■ Effectiveness of anti-monopoly policy ..........................................................80 ..................................02 2.................................................■ Regulation of securities exchanges .............................................49 ..............06 2.........................■ Broadband Internet subscribers*...............12 1........13 6...........■ Public trust of politicians.................103 ......■ Burden of customs procedures ..■ Infant mortality*.01 5............07 8.....................■ 4..........15 1...............................04 6....■ Efficiency of legal framework in settling disputes..71 ..92 ........■ Government debt*....■ Time required to start a business* ................122 .............03 6.................113 ........■ 9...............................108 ................................................07 9............■ Quality of primary education.....14 1...■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6................................01 9...90 .........58 ..................................................................04 4........................06 4................04 3......124 ..................................■ Availability of scientists and engineers .............09 Local supplier quantity ...................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.........................07 11..................04 9......■ 8......■ Ease of access to loans ..107 ...................■ Business impact of HIV/AIDS ....................03 4.................................16 1...................■ Gov’t procurement of advanced tech products ............■ National savings rate*.....86 ...........65 ..........19 Property rights ...■ Quality of roads..........62 .................■ Prevalence of foreign ownership .■ State of cluster development ..............124 ..............10 6...........■ Ethical behavior of firms ....................09 4......................■ Quality of the educational system ...........30 ............120 .................■ Interest rate spread* .110 .......■ Burden of government regulation..03 3...94 .............02 11....■ Primary enrollment* ....02 Foreign market size index*........................................................................................................111 ................128 .........................................................05 8.133 .....................131 ........85 ..79 .107 ......131 ..............09 6...................................17 1...■ Intellectual property protection...........................118 .........■ Prevalence of trade barriers.....08 Availability of latest technologies.....................■ Pay and productivity... of procedures required to start a business* ....■ FDI and technology transfer .....01 12......................................................07 5........■ Favoritism in decisions of government officials ........115 ..........................................................121 .......03 1............11 6.04 8...................................■ Utility patents*..........11 1.......................15 Intensity of local competition ............■ Degree of customer orientation .....■ Extent of market dominance ...........67 ...............■ Total tax rate* ..........10 1..................■ HIV prevalence*...94 .....95 .........131 ..............................08 1..............■ Education expenditure* .04 5........■ 12.............................................■ Flexibility of wage determination........■ Reliance on professional management ....48 ....................■ Extent of marketing ..............125 ....................■ Willingness to delegate authority .....................06 6.98 ............................■ Firing costs* ..........■ Strength of auditing and reporting standards ........................................09 1........................■ Tuberculosis incidence*.....■ Local supplier quality ........06 7..............96 ..........08 Quality of overall infrastructure.....06 9......50 ...............103 .........■ Protection of minority shareholders’ interests ................................97 ................................05 Government surplus/deficit* .....................■ Quality of management schools ....................■ Tariff barriers* .......■ Laws relating to ICT..........................108 ................01 3...............■ Hiring and firing practices ......55 ..07 Capacity for innovation .....................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.....................121 ....■ Production process sophistication .....................................

...1...............77 ...1: Country/Economy Profiles Croatia Key indicators GDP (PPP int'l $) per capita...........6 2nd pillar: Infrastructure..........3 GDP per capita (US$).....1 8th pillar: Financial market sophistication...................1.......................................6 GDP (US$ billions)......50 ..........................4..........................................4.......... 2008...2 GCI 2007–2008 (out of 131).....................1......0 Poor public health .....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...................4...............................................7 Crime and theft ......................................................8 12th pillar: Innovation............................................20...........4.............0 Transition 1–2 1 GCI 2008–2009 (out of 134)...........2 10th pillar: Market size........6........9 7th pillar: Labor market efficiency ........................4...........0.....67 ........4......................65 .......4......2 6th pillar: Goods market efficiency.......... 1980–2008 Population (millions).................................................0 Poor work ethic in national labor force ...................................... 2008............16..0.....................................3................................................................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....7 Tax regulations ..0..............69.....................3.....52 .........................7 124 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..........6 1st pillar: Institutions ................85 ............3 3rd pillar: Macroeconomic stability...............44 .....1 Foreign currency regulations................................................000 10...............................8 4th pillar: Health and primary education .......2 Factor driven Basic requirements............................72 ................92 ..................................................................................................................1 Inadequately educated workforce...0 Access to financing ......4.........5 Restrictive labor regulations ..7....................................49 ...........................................61 ..4....628.................................15..............57 .. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...............................15............ 2008 .........5...94 ............................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....1 5th pillar: Higher education and training .5 Policy instability.......................84 ...8 Inflation ....5...................................................3...1 9th pillar: Technological readiness.........1 GDP (PPP) as share (%) of world total...........3..............000 Croatia OECD 30.. 2008 .2 Financial market sophistication Goods market efficiency Labor market efficiency Croatia Economies in transition from 2 to 3 The most problematic factors for doing business Inefficient government bureaucracy...4...........8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............................................000 20.....................2 Tax rates ....4.......7 Corruption....................4..........43 ........61 ...............9......56 .................................1.................8............................ The bars in the figure show the responses weighted according to their rankings.72 ......7 Inadequate supply of infrastructure ............3......4..11 40.......3..................2......................................6 Government instability/coups ................................5 11th pillar: Business sophistication.....................

.......................................63 ........01 8.03 2.................02 12....................................03 1.............104 .......................10 4......01 4...79 ........■ Extent of market dominance ...........................13 6.....■ Telephone lines* .......■ Quality of air transport infrastructure....05 5...........■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......04 8...■ Degree of customer orientation ..............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5........................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.■ Burden of customs procedures ......................79 ....................86 .■ Time required to start a business* ...120 ...................................120 ......................54 ...■ Transparency of government policymaking .....................77 ....■ Venture capital availability ...■ 11th pillar: Business sophistication 11...............■ Infant mortality*...............................■ Quality of railroad infrastructure .....06 1....91 .17 1...............08 11............26 .........■ Laws relating to ICT..................................... of procedures required to start a business* ....■ Business impact of tuberculosis...............................................■ Judicial independence ..48 .......64 ...■ Extent and effect of taxation ...60 ...........................................■ Government debt*...........8 ..............■ Quality of the educational system ....35 ........16 1......■ Local availability of research and training services ...04 5.................■ Nature of competitive advantage .....................................................43 ..75 ........04 6......73 ............................■ Restriction on capital flows ....06 2......................102 ..............49 .................■ 10...........06 9.............................■ Total tax rate* ....02 3............................107 ..................................08 4.....■ Internet access in schools .....................■ Quality of primary education...........02 2....05 8....................18 1.......................................124 ...60 .■ 2.....................■ Business impact of HIV/AIDS .....94 ........■ Life expectancy*...■ Reliance on professional management ...05 6..........39 ..........09 Local supplier quantity .........04 2.......13 1..............■ Production process sophistication ..............................................................................................05 12....................................■ Organized crime...........................06 7....................................................105 .......................................69 ..■ Quality of roads.........................................■ Quality of management schools ...............■ Public trust of politicians.........109 ....................04 12..........................07 7.....................57 ...54 ........................70 ..................................09 Cooperation in labor-employer relations ..........................74 ............116 .05 11............................01 5...........89 .02 7...........97 .■ Efficiency of legal framework in settling disputes................1: Country/Economy Profiles Croatia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 125 .97 ...06 8.................................................74 ..............15 Intensity of local competition .................07 9.........................■ Firing costs* ......................■ Flexibility of wage determination.........41 .........09 4........09 1....111 .......................................................................102 ..66 ................12 1....■ 8.....38 .........■ Broadband Internet subscribers*............................02 9..........■ University-industry collaboration in R&D ........................................■ Interest rate spread* .....................57 ..........84 ...........................................................................■ Strength of investor protection*............02 8............03 7.............................01 9.............................■ 9th pillar: Technological readiness 10th pillar: Market size 10............47 .............................................................................68 .................................................................61 ................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................02 1......................100 ............48 ......................................................05 Government surplus/deficit* ...........■ Intellectual property protection..........■ Quality of scientific research institutions..........116 .....■ Efficiency of legal framework in challenging regs ................■ Business costs of terrorism......................................................03 6......................................31 .115 .................................03 3......03 8......■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..................................................72 ..............01 2.....................118 .............................................8 ........■ Buyer sophistication .........................................................................■ Inflation* ......15 ......04 7.....................................76 .............■ Effectiveness of anti-monopoly policy .86 .07 1.........03 5...................■ Efficacy of corporate boards ..86 ..58 .....1 .................■ Strength of auditing and reporting standards ...........................75 .................................................01 Domestic market size index* ..■ Utility patents*.......................36 ...02 11.09 Financial market sophistication....06 5.....■ Available seat kilometers* ....................98 .............■ Mobile telephone subscriptions*.....■ Tuberculosis incidence*.........■ Personal computers* ......................■ Quality of math and science education ....■ Hiring and firing practices .....106 ................■ Local supplier quality .......31 .87 ...........■ Reliability of police services.................92 ........■ Primary enrollment* .....89 ................■ Pay and productivity....01 3..............................■ HIV prevalence*..............02 Foreign market size index*....................................57 ............03 9.................98 .........................■ 12......................■ Burden of government regulation.......................08 8..................19 Property rights ............07 Capacity for innovation ....01 12...........44 .......07 6.....80 .79 .............93 ....................................................52 .■ Financing through local equity market...........................03 11.....89 ............05 7.....■ Extent of marketing .....■ Availability of scientists and engineers ...........05 1..04 11..........01 6....04 9....................82 .....■ Ease of access to loans .........■ Agricultural policy costs ................................33 ..........07 11....04 3...03 4.......11 6.........................■ Tariff barriers* ..................................82 .............■ Favoritism in decisions of government officials ........08 1..........06 11..........73 ...........................................................................................02 4...........................87 .............................85 ...........................................08 Secondary enrollment* ...08 Availability of latest technologies.............■ Soundness of banks ...........................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...................■ Diversion of public funds .............................01 11..............50 .....126 ...■ Tertiary enrollment* ....71 .....................................................56 ......■ Control of international distribution ...■ 4.........................79 ...............................29 ........07 8....................05 9.............................................■ Ethical behavior of firms ...37 ...■ Value chain breadth.................................................■ Firm-level technology absorption...............04 4............................06 12............................11 1..........54 .■ Prevalence of trade barriers..........15 1............09 6.■ Business impact of rules on FDI ...................66 ..................................................06 6.......1 .......■ Internet users* ..75 .07 4..........■ Willingness to delegate authority ................■ Rigidity of employment*..............64 .....88 ..............■ Female participation in labor force*...............................■ Prevalence of foreign ownership ..12 6...11 Business impact of malaria..................10 6..........10 1........................................................................... 2.................04 1...........■ Malaria incidence* ..■ Gov’t procurement of advanced tech products .36 ....................08 Quality of overall infrastructure..43 ............■ Brain drain ...............................02 6.............................66 .........■ 7th pillar: Labor market efficiency 7.....■ Extent of staff training ......02 5.■ Legal rights index*..80 .........110 .......■ State of cluster development ....1 ..................■ National savings rate*.■ Business costs of crime and violence ..............■ No.....................05 4....06 4........................64 ...01 1........................34 .....■ Education expenditure* .08 7........■ Regulation of securities exchanges ...07 2.....61 .........■ Quality of electricity supply ..14 6......■ Wastefulness of government spending....■ FDI and technology transfer ...........51 .........99 ........14 1.......01 7...■ Company spending on R&D ..........■ 9.....08 6..............76 .......07 5....■ Protection of minority shareholders’ interests .............03 12....................05 2...............................................................78 .........■ Quality of port infrastructure.................

...........32 ...0 9th pillar: Technological readiness.............5...03 40...........5........2.........................1.......24 .......1 GDP (PPP) as share (%) of world total..............46 .......4.........22 .........2 4th pillar: Health and primary education ......2..........3 Inflation ....................................6.....................................1: Country/Economy Profiles Cyprus Key indicators GDP (PPP int'l $) per capita.................21 ..................8 6th pillar: Goods market efficiency...................2 Poor public health ...9 7th pillar: Labor market efficiency ..................................................4 1st pillar: Institutions ........................6 Access to financing .......................0...2..........................2...............4..............................................................................6 Transition 1–2 1 GCI 2008–2009 (out of 134)........0 2nd pillar: Infrastructure............4.......4.................35 ............................5.. 2008...................................772....5 10th pillar: Market size.....................................34 .......5 5th pillar: Higher education and training ........................0 Inadequately educated workforce.7 Government instability/coups ...................8 Foreign currency regulations........ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....6 8th pillar: Financial market sophistication................4.................................4................28 .......6 Restrictive labor regulations ...........9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................9 GDP per capita (US$)........................1 Poor work ethic in national labor force .............4........3......................................55 .......... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .....................5 .................000 10.3.24..............................................4...............1 Tax regulations ...............................3 Crime and theft ....... 2008.........................3 126 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers............. The bars in the figure show the responses weighted according to their rankings..6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......................................4........................2 Factor driven Basic requirements.......................000 20........... 1980–2008 Population (millions)..2 3rd pillar: Macroeconomic stability................................................................................31 ................................40 .........................12.............41 ............7 12th pillar: Innovation.........5........4..................3...........5............32.24 ................................................................8 Tax rates ...................3 Inadequate supply of infrastructure .............0............4..............................................16.10.............1 Policy instability........................9 GDP (US$ billions)...........................38 ......4...4 Corruption.............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...........39 ....................................19....5... 2008 ..6...............000 Cyprus OECD 30....................... 2008 ...................2...................................7 Financial market sophistication Goods market efficiency Labor market efficiency Cyprus Innovation-driven economies The most problematic factors for doing business Inefficient government bureaucracy....18 ........2 11th pillar: Business sophistication.....................5....99 ..5 GCI 2007–2008 (out of 131)....

......■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.10 1.............................24 .............03 4..................■ State of cluster development ....04 6..................................................................■ Business impact of HIV/AIDS ...............................■ Personal computers* ...........................■ Transparency of government policymaking .....................07 7........■ Mobile telephone subscriptions*..............■ Utility patents*.....■ Venture capital availability ..............08 8..................■ 9th pillar: Technological readiness 10th pillar: Market size 10................................04 9..■ Firm-level technology absorption...................■ 7th pillar: Labor market efficiency 7....................01 9...................................06 8......................................................06 9........................................■ Quality of roads............................08 7....................■ Local availability of research and training services ....................................■ Telephone lines* ..........................03 3.........27 ........................04 3...35 .........09 Financial market sophistication..........03 12..................■ Efficiency of legal framework in settling disputes.............14 6.20 ...07 11......■ Reliability of police services.■ Quality of the educational system .......■ Available seat kilometers* ..■ FDI and technology transfer .................................■ Prevalence of trade barriers..........■ Life expectancy*...............................32 ...43 ..01 4...26 .................■ Intellectual property protection..................................09 4.......................05 2.........10 4..................05 4...........02 3...................02 5......................................................................25 ................03 8.■ Production process sophistication .................28 ...5 .............................................03 1............07 4.........................01 3......■ Quality of air transport infrastructure................07 8.........................................■ Value chain breadth.........111 ..........60 ..........................................■ Quality of electricity supply .......■ 11th pillar: Business sophistication 11..........■ Extent of marketing ......................■ Public trust of politicians...........■ Infant mortality*..................................■ Quality of math and science education ...............■ Favoritism in decisions of government officials ...02 8................08 6..25 .........................................................................................29 ............................■ Burden of customs procedures .................................02 2...................................11 .............04 7.........18 .....................05 11........■ HIV prevalence*...........................33 .........10 6.........39 ............30 ..07 9...05 1.47 ....................■ Broadband Internet subscribers*...........52 .............21 .......05 9..■ University-industry collaboration in R&D .■ Malaria incidence* ....23 ................29 .....................21 ....05 6...■ Nature of competitive advantage .............................■ Gov’t procurement of advanced tech products .....30 ...■ Control of international distribution ........■ Reliance on professional management ..13 .........................................................06 1.........37 ...■ Ease of access to loans .................................67 ............n/a 9..............................02 11................■ Business impact of rules on FDI ..........■ Judicial independence ..............................................04 11........16 ...............................................13 6..39 ....................................42 .03 11............37 .................02 12...............................................38 .................................08 1.......................... 2.04 2.........................47 ..59 ..............■ 4........■ Efficiency of legal framework in challenging regs .............................■ National savings rate*......................................5 .............02 4..........................■ Quality of railroad infrastructure....06 6.............1 ........04 8..............04 1...................■ Interest rate spread* ....21 ...........05 5...10 ....01 8....................................................22 .........................06 5...................12 1.....................17 ...............01 2........... of procedures required to start a business* ...........................................................■ Quality of management schools ........31 ....40 .......■ Government debt*.........................■ Internet access in schools ........................09 Cooperation in labor-employer relations .............................................................■ Burden of government regulation.....19 .............26 .............52 .............34 ................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1................................11 ........................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................■ Brain drain ..■ Local supplier quality ...........13 1..............................................................■ Total tax rate*................................08 4................01 5......30 ......■ Financing through local equity market................06 2..............25 .................................15 ..■ Regulation of securities exchanges ..............■ Tariff barriers* ............................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..................■ Effectiveness of anti-monopoly policy .........................................30 ...........................................05 Government surplus/deficit* .....■ Flexibility of wage determination...........................30 ............■ Organized crime.......18 1......02 7............................03 6.................................02 Foreign market size index*....■ Tertiary enrollment* ............■ Extent of market dominance .11 6...............■ 10......................................n/a Quality of port infrastructure...05 8.....................................■ Internet users* ...19 ..........01 7........13 ......07 2.......37 .................■ Efficacy of corporate boards ................■ Business impact of tuberculosis...............................................09 Local supplier quantity ........09 6..................................................16 .02 6.............■ Degree of customer orientation ...................■ 8.........03 7.................11 1...........................................45 ..3 .........n/a Soundness of banks .............01 Domestic market size index* ...■ Wastefulness of government spending........08 11...13 ..........................................08 Secondary enrollment* ................17 1.72 ......101 ....27 ...........■ Business costs of crime and violence .......10 .......................■ Firing costs*..............■ Restriction on capital flows .........................n/a No...02 1......29 ..........16 1...........04 4.n/a Time required to start a business* .....................03 5........................■ Inflation* ..96 ...........72 ......38 .............................18 ...............01 6..05 7......■ Quality of scientific research institutions....1 ........................06 4................■ Willingness to delegate authority ...32 ....................99 ..■ 12th pillar: Innovation * Hard data Note: For further details and explanation.........................22 ...............36 ....................29 .............................07 1........................22 ..........92 .13 ...■ Strength of auditing and reporting standards ...64 .......................................■ 12.................03 9............■ Ethical behavior of firms ..............■ Company spending on R&D .24 ........06 7......■ Education expenditure* ............................06 12.........................29 .............................11 Business impact of malaria....01 12.........n/a Hiring and firing practices ..01 1.............■ Prevalence of foreign ownership ........29 ....n/a Agricultural policy costs ........■ Legal rights index*......................15 Intensity of local competition .....08 Quality of overall infrastructure......24 .■ Diversion of public funds .............06 11...................■ Laws relating to ICT.....34 ...........n/a Pay and productivity..................14 1..............07 Capacity for innovation ...29 ....................9 .............■ Protection of minority shareholders’ interests ...07 5.■ Quality of primary education.58 .■ 2....................■ Extent and effect of taxation ........18 ..................70 .............20 ..■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.............27 .................................03 2.............■ Female participation in labor force*........................■ Business costs of terrorism...07 6.......40 .....29 ..............97 .................15 1........................01 11................................................57 ................................49 ......................04 5..36 ................................19 Property rights .■ Availability of scientists and engineers ............................09 1..................05 12..................■ Rigidity of employment*............20 ............................18 .....................................08 Availability of latest technologies.......■ Primary enrollment* ...........1: Country/Economy Profiles Cyprus The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 127 ...12 6....02 9..39 ..04 12....■ Strength of investor protection* .........■ Tuberculosis incidence*................■ Extent of staff training .............■ Buyer sophistication .....43 ......

.....................................21....... 2008.................20 ...................9 2nd pillar: Infrastructure................4...................... 2008 ......217...43 .............................4. 1980–2008 Population (millions)................5............................................4..............48 ..25 .8 7th pillar: Labor market efficiency ........0.................................................................4................4.............................................................8 1st pillar: Institutions ...5..................9 128 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.................................6 9th pillar: Technological readiness..000 XXX Republic Czech &&& OECD 30.42 .........................................................4............4...................9 Poor work ethic in national labor force .2 Access to financing .......................30 .................7 10th pillar: Market size.......1..........................................................2..............................4.............0 Financial market sophistication Goods market efficiency Labor market efficiency Czech Republic Innovation-driven economies The most problematic factors for doing business Inefficient government bureaucracy...3 3rd pillar: Macroeconomic stability.....9 Tax regulations ..................................5 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................................38 40................... 2008 ...1..............4.......................25 ..............6........................................ The bars in the figure show the responses weighted according to their rankings.....027...............5 Policy instability........................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.45 ...................................................4..................................31 ..........................000 10..5.............................2...5..................7 Transition 1–2 1 GCI 2008–2009 (out of 134).............4.....3.....4..33 .........10...................33 .........................4.........................................8....................................4 11th pillar: Business sophistication.........3...................26 .....2.............1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...............24 ...................................2 GDP (US$ billions)...6 Inflation .................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ................6 GCI 2007–2008 (out of 131).3 Foreign currency regulations...8 5th pillar: Higher education and training ........7 Poor public health ..................33 ....15...................................1 6th pillar: Goods market efficiency.................................40 ................0 Tax rates ......10......5. 2008.62 .... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.............................27 ...9 8th pillar: Financial market sophistication....2 Restrictive labor regulations .......7 Crime and theft ........13........................................5 GDP (PPP) as share (%) of world total.....4.......8 12th pillar: Innovation.....................6..1..........................................24 .....9 Corruption..5 Government instability/coups ..4 Inadequately educated workforce........................................1: Country/Economy Profiles Czech Republic Key indicators GDP (PPP int'l $) per capita.......6 Factor driven Basic requirements............14....000 20..................................1 GDP per capita (US$).......................9 Inadequate supply of infrastructure .........0 4th pillar: Health and primary education .

...........................■ Total tax rate* ............07 6..............36 ..............................■ Broadband Internet subscribers*.■ Business costs of terrorism............■ Quality of scientific research institutions............................................03 3....................■ 11th pillar: Business sophistication 11.............■ Brain drain ...■ Willingness to delegate authority ...■ 2..................1: Country/Economy Profiles Czech Republic The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 129 ......................................46 .....................03 8........................................76 .........................■ Quality of management schools ........................................104 .....■ Financing through local equity market..................■ Burden of government regulation..16 .................■ FDI and technology transfer ....02 3............04 7......................■ Quality of railroad infrastructure .■ 9...........■ Diversion of public funds ....................06 8......■ Quality of air transport infrastructure.......................................................58 ......................................................15 ................■ Burden of customs procedures .■ Prevalence of trade barriers.......07 5....65 ..■ Strength of investor protection*...........05 1................................................02 5...59 ............................................50 ...04 4........32 ................36 ....19 .........05 5...........................01 6............03 2..........04 1..........60 .......13 .....■ Intellectual property protection......................28 ......■ Nature of competitive advantage ........................49 ........................................18 1...........■ Firm-level technology absorption....................32 ........................03 9....60 ......................06 11.......19 .............■ Extent and effect of taxation ....■ Favoritism in decisions of government officials ...50 ....................■ Efficiency of legal framework in challenging regs ..................■ Flexibility of wage determination.............15 1.........................35 ..............................■ Education expenditure* ......................................■ Judicial independence .■ No......01 1...........................................■ Degree of customer orientation .....■ Regulation of securities exchanges ...............................................................................................07 4................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............07 2.....58 ................52 ...................02 12..■ Legal rights index*..........................................■ Tertiary enrollment* ..................................06 2...........................54 .....■ Extent of marketing .................81 ..■ National savings rate*.....................■ Available seat kilometers* ...............................04 5....56 .■ Protection of minority shareholders’ interests .....57 ...........................................■ 7th pillar: Labor market efficiency 7....................■ Ease of access to loans .........38 .....................10 .......03 7...................................................... 2..............01 5...........■ Utility patents*.■ Extent of staff training ................................................................................................19 Property rights ..................115 ....24 ...34 .......11 6.■ Control of international distribution .34 ..................................■ Quality of the educational system ..............08 Secondary enrollment* ..............■ Local availability of research and training services ........06 12..■ Malaria incidence* ................74 ....................................■ State of cluster development .....■ Life expectancy*....55 ........■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....■ Female participation in labor force*.........■ Public trust of politicians..................03 5.43 ...........................................01 2.....05 4...............06 5.................5 .....07 Capacity for innovation ......114 .....49 ...............................■ Buyer sophistication ..........................■ 12th pillar: Innovation * Hard data Note: For further details and explanation......02 9......44 ........................■ Rigidity of employment*........24 ...................04 6...21 ...13 1..............................■ Primary enrollment* ........................................04 8................................27 ......11 1..36 ...................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........■ Quality of primary education.....................9 ...04 11.................................................24 ..............09 6.............02 8..........■ Internet access in schools .■ Quality of port infrastructure..............08 4......................................■ Tariff barriers* ....................21 ........................08 1.......................09 1......■ Soundness of banks .....■ Venture capital availability ................■ 10...■ Tuberculosis incidence*................02 11.............■ Quality of electricity supply .....35 ......■ Extent of market dominance ....28 ..............■ Efficacy of corporate boards ..........■ Value chain breadth..03 6...14 .04 12.....................19 ............................85 ................................................09 Cooperation in labor-employer relations ................................■ Business impact of HIV/AIDS ................16 1......................70 .............■ 8.......25 .................05 8......................■ Prevalence of foreign ownership .08 7...■ 4............37 .91 ...15 ......48 ................09 Local supplier quantity ........06 6..................13 6........27 ...................................................■ HIV prevalence*.............■ Wastefulness of government spending...........■ Company spending on R&D ..37 ..........................■ Gov’t procurement of advanced tech products ..........19 ..................02 7.......01 11..............05 7................................3 .............01 8.05 2...■ Mobile telephone subscriptions*....21 ..■ Local supplier quality ....24 ............................01 7.....41 ....04 2..........10 ......■ Business impact of rules on FDI .....................25 ........................■ Hiring and firing practices ...........................................................■ Production process sophistication ..........03 4...............................................................................16 ...................................................11 Business impact of malaria.........■ Time required to start a business* ....■ Reliance on professional management ..........■ Quality of roads....14 6.................08 Availability of latest technologies..........■ Internet users* ....45 .....38 ...........32 .............61 ........■ Agricultural policy costs .......■ Ethical behavior of firms .......................07 7..87 .....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.■ Reliability of police services............................10 1............05 11..............................................08 8......■ Transparency of government policymaking ........01 4.............................07 1.................01 12...................................................................14 1.......47 .................................■ Effectiveness of anti-monopoly policy ..■ Organized crime.....07 11.08 Quality of overall infrastructure.................................................................06 9.....................26 ...01 9....02 1................29 ...........................02 6.23 ...■ Government debt*......................■ Interest rate spread* ..............45 ................21 ....07 9..............27 ......................■ Quality of math and science education ...31 .........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.....36 .....................12 1.........25 ..............05 Government surplus/deficit* .............104 .....................71 .......■ Personal computers* .68 .....09 Financial market sophistication......56 .05 12...........................103 .........................................................07 8........1 .....■ Pay and productivity.................■ Firing costs* .......03 11.02 4................................■ Business impact of tuberculosis.................88 ...................................06 1........■ 12...91 ..............02 Foreign market size index*.......■ University-industry collaboration in R&D .......17 ...............09 4....04 9.....37 .06 7...............1 .08 6................................................. of procedures required to start a business* ..................................55 ..■ Efficiency of legal framework in settling disputes.....................05 9...01 3...79 .....03 12....06 4.......................................12 ..............32 ...........................26 ............■ Inflation* .........08 11........................................................71 ............41 .■ 9th pillar: Technological readiness 10th pillar: Market size 10....02 2..........■ Infant mortality*.............................................10 4.......40 ..............................................03 1...................■ Telephone lines* .............................................12 6..................8 ...................■ Availability of scientists and engineers .10 6.............................................15 Intensity of local competition .......■ Strength of auditing and reporting standards ....62 ..............14 ....■ Laws relating to ICT.................■ Business costs of crime and violence ..................80 ......41 ..................................04 3.............................■ Restriction on capital flows .......17 1...................05 6........32 ......01 Domestic market size index* ..........41 .........

.......5 GDP (US$ billions).............5.................................................0 Financial market sophistication Goods market efficiency Labor market efficiency Denmark XXX Innovation-driven Innovation-driven economies economies The most problematic factors for doing business Tax rates ...........................................................................000 10.................8 3rd pillar: Macroeconomic stability......8 Foreign currency regulations.......................0 1st pillar: Institutions ........ 2008............................................................................9 GDP per capita (US$).............. 1980–2008 Population (millions)....................................................625.......5...........................0 Corruption.....5..............2.......0.6 .. 2008 .........0..........6..0................................5 8th pillar: Financial market sophistication...........6.......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...........7 Restrictive labor regulations .............3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............... 2008 .............5..4 5th pillar: Higher education and training .......................5.6 GDP (PPP) as share (%) of world total..........5....................................2......5 ............6......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....5 .........9 6th pillar: Goods market efficiency...........12 .................1 2nd pillar: Infrastructure.........................................................5..10 ..........................................................................................6 Access to financing ......................3 .........................................................1..............................................................................9 Inefficient government bureaucracy...............6 ........14 .............5..7 4th pillar: Health and primary education .......5..0..25...........5...............13.......3 .........7 ...............8 .....5...3 11th pillar: Business sophistication...5...............................................2 ....000 Denmark OECD 30...........................0 Poor public health ............................49 ....5 12th pillar: Innovation.. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............8 ........6 GCI 2007–2008 (out of 131)..5 Policy instability.....342.....1: Country/Economy Profiles Denmark Key indicators GDP (PPP int'l $) per capita.6 Factor driven Basic requirements..........5..............000 20..................6.....4.........................................4...................2 7th pillar: Labor market efficiency .........................................................3 ... 2008................................9......0 Inflation ......1..................6.............4 ..3 9th pillar: Technological readiness.................3 130 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....3 Crime and theft .........................................0 Poor work ethic in national labor force ........2...........9 10th pillar: Market size....5 Tax regulations ..5.5..........5 Government instability/coups ......................4 ........................................4 Inadequately educated workforce...................................... The bars in the figure show the responses weighted according to their rankings......30 40...........................5 Transition 1–2 1 GCI 2008–2009 (out of 134).........................................62...........................0............7 ........8 Inadequate supply of infrastructure .................................25.....

............................■ Tuberculosis incidence*..............■ Willingness to delegate authority ........3 ................................■ Restriction on capital flows .........04 6...................................................................06 4...■ Venture capital availability ....■ Local supplier quality ............................07 5...........3 ....■ 4............................................................................■ Financing through local equity market.................15 Intensity of local competition ........■ Protection of minority shareholders’ interests ........11 Business impact of malaria..................13 ......■ Extent of staff training .....■ Quality of roads......05 9.....10 6......................................6 ......................■ Quality of railroad infrastructure ...................................2 ......................3 ....■ FDI and technology transfer ......07 11...................................2 ................................................................................17 ............................09 4...................2 ..........................................................9 ...............................03 4........................2 ........02 1..........07 9...............■ Quality of primary education.............................. of procedures required to start a business* ........10 ..........■ Production process sophistication .....................................9 ...44 .....................10 ....2 ....01 Domestic market size index* ...................................................................19 .............7 ........ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.18 .......■ Quality of air transport infrastructure...04 1..■ Burden of customs procedures .....■ Extent and effect of taxation .............■ 2nd pillar: Infrastructure 2.05 4...01 12...........................6 ........■ Quality of electricity supply .....■ Degree of customer orientation ........06 11....■ Utility patents*.■ Nature of competitive advantage .........■ National savings rate*...............................■ Public trust of politicians........................................................................24 ..........4 ...................5 .............19 .■ 10.05 12...............24 .................................■ Extent of marketing ...........8 ..01 1...........4 ........................................2 ...................03 3.........■ Ease of access to loans ...................................02 5.........................................■ Favoritism in decisions of government officials ....................15 ..01 4...........5 ...........■ Available seat kilometers* ...........■ Diversion of public funds ..............03 11.............................................................■ Personal computers* ..■ HIV prevalence*........01 6...................03 1......................................................19 Property rights ................... 2.....■ Quality of the educational system ...46 ......................18 ......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....1 ................................03 9.....01 2.........01 3.........................02 2..26 .....................2 .........02 4................05 1.....................................■ Firing costs* ........11 6............7 ..........08 6.........................04 2...............04 3........02 12.........■ Reliance on professional management ...........7 ............7 .8 .........04 12.................09 Cooperation in labor-employer relations .....................■ Malaria incidence* ......................08 4..07 8.............4 ......04 7............4 ..................104 .............69 ...■ Effectiveness of anti-monopoly policy ...............07 4...............14 ........36 ...05 Government surplus/deficit* .............■ Total tax rate* .....■ No...■ Efficiency of legal framework in settling disputes.07 1.......................08 Quality of overall infrastructure.........■ Efficiency of legal framework in challenging regs ...........................................................................................■ University-industry collaboration in R&D ..................■ Life expectancy*...........................14 .............18 .................■ Government debt*..06 8..3 ...■ Primary enrollment* ..■ Buyer sophistication .....................................................7 ..................■ Prevalence of trade barriers............................12 .........................14 ..........20 .........23 .....................■ Strength of auditing and reporting standards ................................■ Quality of scientific research institutions...■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..................06 6...........10 4....12 1.....08 11...............4 ...■ 3rd pillar: Macroeconomic stability 3.................05 2....■ Mobile telephone subscriptions*......04 8.........44 .................................02 11...........................■ 9th pillar: Technological readiness 10th pillar: Market size 10......................■ Burden of government regulation................9 ..18 .....10 1....14 1..............57 .............................03 7...■ Laws relating to ICT...................06 7................11 1..................................17 1...21 ..............................■ Gov’t procurement of advanced tech products ....................06 2.........................................................................................................5 ......................■ Organized crime....................04 5...6 .........................................03 5.....................................................58 .........■ Local availability of research and training services ...........■ Quality of port infrastructure.■ Strength of investor protection*..........12 ...9 ..............■ Brain drain ..........■ 8.15 ..................................................................■ Tertiary enrollment* .16 1..............................■ 9................................28 ............1: Country/Economy Profiles Denmark The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 131 ...................■ Telephone lines* ....27 ..................................08 Secondary enrollment* .........14 ...............6 ...................01 9.............49 ...■ 12th pillar: Innovation * Hard data Note: For further details and explanation....■ Availability of scientists and engineers .■ Reliability of police services....03 2.........■ Education expenditure* .................................04 11................05 7...........04 9.................................16 .48 ..8 ..........■ Intellectual property protection....................21 ......................02 8....■ Extent of market dominance ...............................■ Internet access in schools ...................54 ................................9 ..09 Financial market sophistication...............6 ...■ Company spending on R&D .............4 ...................................08 7................2 ...............54 ..03 6........■ Business impact of tuberculosis....................................■ Flexibility of wage determination..........07 6....■ Ethical behavior of firms ..129 .................06 5.■ Broadband Internet subscribers*..............■ Prevalence of foreign ownership .........■ Business impact of rules on FDI ..............3 .06 12..6 ..02 3...................14 ..........13 1........08 1...........................................5 .......................7 .............■ Transparency of government policymaking .....................................13 .......................................■ 7th pillar: Labor market efficiency 7........■ Wastefulness of government spending......■ 12.................02 6................15 1....................07 7.........11 .............6 ............................05 5..........................14 .........■ Tariff barriers* .............................................■ Value chain breadth.............6 ...............■ Regulation of securities exchanges .....................................02 7.....................18 1.01 5.■ Rigidity of employment*.05 8......................■ Time required to start a business* ..................................08 8......13 6...........................■ Efficacy of corporate boards .............................40 .................................................8 ..........6 .........................................■ Hiring and firing practices ......04 4...........4 .................■ Judicial independence ..................9 .■ State of cluster development .■ Business costs of crime and violence .........03 12.......8 ...........■ Business impact of HIV/AIDS ..............■ Internet users* .................................................................■ Firm-level technology absorption...................03 8.07 2...................7 .■ Quality of management schools .......■ Infant mortality*..........08 Availability of latest technologies...............02 Foreign market size index*.................01 7.......1 ......14 ........■ Female participation in labor force*...■ 11th pillar: Business sophistication 11.................06 9..................■ Soundness of banks ....05 11.......................07 Capacity for innovation .5 ..............................8 ....■ Pay and productivity....21 .....................................05 6........6 ...................................■ Legal rights index*.......■ Agricultural policy costs ............01 8...........09 6..........30 ....................................................................01 11...........■ Quality of math and science education .............■ Interest rate spread* .5 ....................1 ..........................09 Local supplier quantity .1 ....■ Business costs of terrorism.........■ Control of international distribution .......The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1........■ Inflation* ......................09 1.................................9 ....14 6...............02 9............40 ....06 1..................12 6..........

..........85 .................................71 ......................11 12................4 11th pillar: Business sophistication....................3 Inadequately educated workforce.................................... 2008 ..............68 .......12....6..............5 Tax rates ........98 ..................................... 1980–2008 Population (millions)... The bars in the figure show the responses weighted according to their rankings...................9............. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....................................................94 .......2......................95 ...................2 Tax regulations ..105 .........................1 Poor public health .................5.....................1: Country/Economy Profiles Dominican Republic Key indicators GDP (PPP int'l $) per capita............89 .............6 6th pillar: Goods market efficiency...3..........8 Policy instability............................0..5 Restrictive labor regulations ..7 Crime and theft .000 6.3...........8 5th pillar: Higher education and training ....0.0 12th pillar: Innovation.........0 7th pillar: Labor market efficiency ............................89 ...................................103 .............2 Inadequate supply of infrastructure ..........................3.82 .......................................................... 2008 ........7 GCI 2007–2008 (out of 131)..................................3..............3.......................................................................................2..........1.............................3.....................8 1st pillar: Institutions ..............45..............................................................................6 GDP per capita (US$)................3.........5...4.....8 Financial market sophistication Goods market efficiency Labor market efficiency Dominican Republic Efficiency-driven economies The most problematic factors for doing business Corruption....................6 132 Transition 2–3 2 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers.....9......................................................................2.5 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........................7 Factor driven Efficiency driven Basic requirements.........................5........................3......3.........4.....000 3.....96 ...........0 Access to financing ... 2008..........................88 .......7 Government instability/coups .......4.................0 Inflation ....3 8th pillar: Financial market sophistication............... 2008........................................2 3rd pillar: Macroeconomic stability.......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....6 9th pillar: Technological readiness............3...........3 4th pillar: Health and primary education ............................................................................3.................................2.......................8 Transition 1–2 1 GCI 2008–2009 (out of 134).2 2nd pillar: Infrastructure..17....13...9 GDP (US$ billions)....4..........98 .....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.................................3.......................................1 Foreign currency regulations.................................100 ....8.................0.6 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....5 10th pillar: Market size.........................73 ...117 .........000 Dominican Republic Latin America and Caribbean 9.....................4 Inefficient government bureaucracy.....12......4........122......3...................1 Poor work ethic in national labor force .....72 .........................0 GDP (PPP) as share (%) of world total..........................................

.■ Business impact of tuberculosis.....................12 6......................02 1........100 ...........07 2.............80 ......■ Quality of scientific research institutions..........................07 Capacity for innovation ..............................................29 ............36 ..08 7.....................64 ........................■ Production process sophistication ............■ Quality of primary education............................■ 12.............................13 1.............50 ..................36 ..............■ State of cluster development .........................10 4...........02 8.......■ Tuberculosis incidence*.......................................127 .01 8..........120 ................■ 4.......■ Internet access in schools .............08 Secondary enrollment* ...................95 ..01 Domestic market size index* ....■ Value chain breadth...............................79 ....................102 ............15 Intensity of local competition ..............■ Utility patents*........105 .......................■ Company spending on R&D ...........90 ...■ 7th pillar: Labor market efficiency 7....03 5....■ Extent of marketing .............93 ................................02 12..............................04 1..................■ Flexibility of wage determination....■ Available seat kilometers* ............................................■ Local availability of research and training services ..............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....■ Legal rights index*.................16 1........130 ..........................................■ Venture capital availability ...................09 Cooperation in labor-employer relations ....................04 4................................02 Foreign market size index*.......15 1...............................................................62 .....86 .......................06 5...........■ Total tax rate* ....■ Female participation in labor force*...................................................09 Local supplier quantity .108 ...........................................■ FDI and technology transfer ..03 11...................................■ Business impact of rules on FDI ..03 2...........................................................................116 ..■ Government debt*.......88 ....122 ..........50 ..........................07 7..........06 4....03 1..........06 9............................131 .68 .05 5.........................90 .......05 4....................100 ...................88 ............04 5..............................................82 ........37 .65 ..........................06 7.......................................■ Brain drain ............01 2...........................................01 1.55 ....06 1...06 8.........................................103 ..........10 1.....■ Mobile telephone subscriptions*..............................................09 4.......02 4.......■ Infant mortality*..■ Quality of math and science education ..........04 3..........................................■ Interest rate spread* ...93 ...........81 ...68 .......■ Quality of the educational system ....................07 11..............45 ...........................................90 ................02 3............132 .......■ Primary enrollment* ....................................102 ....96 ..........04 12..11 6...35 .......18 1..........84 .01 5............................87 ..............01 9...............................133 ..............49 ..................129 ......82 .......■ Quality of port infrastructure............................66 ..01 3......■ Judicial independence ..65 ...............................................58 ....04 7..■ Local supplier quality ...........■ Strength of auditing and reporting standards .............03 4...........■ Gov’t procurement of advanced tech products ......................79 ....78 .......60 .....................112 ......................71 ..........02 11.03 6.04 8........■ Extent of staff training ....07 9........................01 11.........62 ..........................90 ...............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....■ Control of international distribution ....■ Nature of competitive advantage ...............06 6.......................................■ 11th pillar: Business sophistication 11.01 7................................................70 ..........................................05 7.............06 11.......................■ University-industry collaboration in R&D .....■ HIV prevalence*...........59 ............115 .......................■ Firing costs* .........102 .....■ Agricultural policy costs .........■ Prevalence of trade barriers.86 ..........■ Ease of access to loans .63 ......................04 9.............■ No.............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........................05 2..08 Availability of latest technologies..........................14 6.......94 ..................................115 .............04 2.............................03 8..................05 1...63 .....■ Pay and productivity...................■ Buyer sophistication .....................■ Tertiary enrollment* .................70 .....■ Diversion of public funds .................03 7....84 ............................................■ Ethical behavior of firms ................75 .. of procedures required to start a business* ............................................■ Financing through local equity market...........■ 9th pillar: Technological readiness 10th pillar: Market size 10...........................62 ....05 6................■ Public trust of politicians.........■ Firm-level technology absorption..■ Regulation of securities exchanges ...■ Intellectual property protection........................................................121 ..130 ....02 9..........................09 Financial market sophistication......................■ Time required to start a business* .91 .56 ........................05 8.......12 1.............■ Telephone lines* .79 ..............■ Degree of customer orientation ......■ Hiring and firing practices ..04 11.......78 ........■ Burden of customs procedures ..........................118 ......................■ Business costs of terrorism............04 6..........................71 ........................................■ Rigidity of employment*................05 9..........■ Business costs of crime and violence ....................................................60 ...■ Internet users* .....08 1.......115 ...........13 6...105 ... 2..............■ Laws relating to ICT.■ Favoritism in decisions of government officials .................■ Life expectancy*..............■ 8..■ Reliability of police services.........69 ..........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..85 ...............................■ Efficacy of corporate boards ....■ Restriction on capital flows ...■ Business impact of HIV/AIDS .105 .02 7...............06 2.......■ Availability of scientists and engineers .................■ Quality of railroad infrastructure ......■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3................................................11 Business impact of malaria........10 6.....98 ....17 1.....01 12.............■ 9.............................................................62 .........................■ Quality of roads........................................02 2............■ Efficiency of legal framework in settling disputes.....19 Property rights ......................................................08 6...............................40 .03 9..............................■ 12th pillar: Innovation * Hard data Note: For further details and explanation....................07 5...............07 1..........................................................................01 4........................03 12......08 4..14 1.....................07 8............................02 6...87 .......■ Efficiency of legal framework in challenging regs ....................■ Broadband Internet subscribers*...........07 4...68 ..■ Malaria incidence* ........07 6.05 11................■ Burden of government regulation..98 ...........................63 ....................72 ........................■ Education expenditure* ....114 .................................05 Government surplus/deficit* .....■ Quality of electricity supply ......................................96 ................02 5.....1: Country/Economy Profiles Dominican Republic The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 133 ......■ Extent and effect of taxation ..........................................49 ......■ Transparency of government policymaking ......■ Reliance on professional management ..........■ Quality of management schools .......08 8.................■ Quality of air transport infrastructure......................■ Extent of market dominance ..............................■ Willingness to delegate authority .■ Personal computers* .88 ........................■ 2.08 11.................................................................115 ......■ Organized crime.......03 3................................05 12............................................06 12..........■ Effectiveness of anti-monopoly policy ..01 6..................77 ....................132 .............................................■ Wastefulness of government spending.......82 ..................................114 .........................■ Tariff barriers* ....................56 ....86 .................■ Strength of investor protection*............■ National savings rate*............■ Protection of minority shareholders’ interests ..........................................63 ..........08 Quality of overall infrastructure..........■ Inflation* ....................................09 6.................09 1..11 1....95 .....76 ..................■ Prevalence of foreign ownership ...............................................■ 10.................93 .......■ Soundness of banks ........65 ...................75 ....

...........................................3 7th pillar: Labor market efficiency ...0 2nd pillar: Infrastructure....44 ...............7 Inefficient government bureaucracy.........................000 2............3.......0 4th pillar: Health and primary education ...........11..............3......................123 ............000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...........1 Inadequately educated workforce.............1............................5.............................................................104 .3...............................................5.2..........5.................7.......13.....1......................................................2 Inflation .9 3rd pillar: Macroeconomic stability.....102 ...3...3 Financial market sophistication Goods market efficiency Labor market efficiency Ecuador Efficiency-driven economies The most problematic factors for doing business Policy instability.2.....................3 Poor public health .....7 Tax rates .....2................................................6 Access to financing .......... 2008 ... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5......15 10......2..........776............................2 Tax regulations ........3........................................................130 ............... 1980–2008 Population (millions)...8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.............. 2008...105 .................100 .............................114 ..000 4................000 6..........3 5th pillar: Higher education and training .....15.............3..................19..............1 Government instability/coups .................................129 ................................6 Transition 1–2 1 GCI 2008–2009 (out of 134)...........................................105 ......3....4........5..................5 Foreign currency regulations.................................3.....5 Poor work ethic in national labor force .............................6 GCI 2007–2008 (out of 131).........................................................................0 1st pillar: Institutions ...................8................................9 10th pillar: Market size.................3.......................................................127 ................4 Restrictive labor regulations .............................................52.................................................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......1.............5 GDP (US$ billions)...125 ....................... 2008.....3.....2...4 12th pillar: Innovation.............1 Crime and theft .............000 Ecuador Latin America and Caribbean 8.....60 ........3 GDP (PPP) as share (%) of world total............. The bars in the figure show the responses weighted according to their rankings.......3.....6 Factor driven Basic requirements.....3.........................2..............1 134 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..............................4 Corruption.......................................2 6th pillar: Goods market efficiency...0....3 Inadequate supply of infrastructure ......113 .6 GDP per capita (US$).........................9 11th pillar: Business sophistication.....93 ..................89 .........................103 ..3..................... 2008 ........ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...................103 ......14...............1: Country/Economy Profiles Ecuador Key indicators GDP (PPP int'l $) per capita...............4 9th pillar: Technological readiness.............0.............3 8th pillar: Financial market sophistication......................................2..........................

...................13 6..■ Tertiary enrollment* ...........■ Laws relating to ICT................................................■ Buyer sophistication ..............................114 ............01 6...11 6.■ Rigidity of employment*.120 ..................................05 Government surplus/deficit* .....02 11.....................■ Interest rate spread* .............................................................09 1..........133 ..■ Life expectancy*.....06 1..............................17 1.. of procedures required to start a business* .....93 ...■ Wastefulness of government spending.............................113 ...........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.■ Business costs of crime and violence .........................02 8...........02 7..............■ 10...........06 8.........123 ................................■ Pay and productivity..■ Value chain breadth...................................................■ Prevalence of trade barriers...............■ Mobile telephone subscriptions*............■ State of cluster development ...................18 1...61 ..........117 ...........59 ...05 5......85 ........93 ......■ Primary enrollment* .....15 Intensity of local competition ..................................................96 ..................06 9..............43 ............08 7.................................■ Agricultural policy costs ..■ Utility patents*.................03 12................111 .............08 11..■ Flexibility of wage determination.............02 5........................01 5.............59 ..■ Availability of scientists and engineers ..■ Business impact of rules on FDI ..............................103 .....124 ......1: Country/Economy Profiles Ecuador The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 135 ....130 ....................125 ...79 ...........................130 .....■ Degree of customer orientation ...06 6...............................08 8...................112 ....07 9...91 .....93 ....................10 6.............................................................................107 ..........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..........122 ......01 Domestic market size index* ..............................124 ..........116 ....................................................09 4.......05 7......10 4.■ HIV prevalence*.....■ Brain drain ........02 12......100 ..................................10 1.....04 7................01 2.............120 ...■ Company spending on R&D .......■ Intellectual property protection...................118 ...115 ......■ Government debt*...........................07 1.............73 .........02 1.■ Favoritism in decisions of government officials .........129 .........99 ...........07 11.........................■ FDI and technology transfer .......................05 11......................................08 4............03 2..69 ...................07 2.........06 2.....................60 ....................■ Total tax rate* ...............................................02 9.....06 11......................04 6......■ Available seat kilometers* ..........97 .........■ Quality of management schools ...................................07 7......117 .75 .............................05 12.......97 ..........123 ..................... 2..............................123 ..............■ Personal computers* .■ Restriction on capital flows ......123 ......15 1.................■ Burden of government regulation.......................122 .....................113 ...69 ..........106 ...............111 ..06 4...............■ Tuberculosis incidence*.......01 7....79 ..................■ 4...■ 12..03 8....08 6.................■ Ethical behavior of firms ..116 ..........................................116 .■ 10th pillar: Market size 10.■ Quality of the educational system ...............................................................02 6......122 ......01 12........111 ......■ Telephone lines* ........104 .............................03 9............................................................................................03 1.....■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.................03 11.....■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......................02 Foreign market size index*.....32 ................123 ..................................................................................■ Nature of competitive advantage ......■ Reliability of police services...98 .......■ Broadband Internet subscribers*.........88 ........■ Business costs of terrorism.........................■ 8......................01 8..................■ National savings rate*......................■ Control of international distribution ....■ Extent and effect of taxation .....■ Quality of railroad infrastructure ..109 ................................................■ Prevalence of foreign ownership ........................131 ..................................................■ Education expenditure* ..02 2.........125 ......01 9.....02 3......................04 5.....................................100 .................................................■ 9th pillar: Technological readiness 9...........................................■ Efficacy of corporate boards .......54 ..............04 4........................113 .11 1............07 6.........08 Quality of overall infrastructure....06 12...................................104 ..................■ Tariff barriers* .....................................14 6...............128 ........................■ Business impact of HIV/AIDS ...........................96 .........................■ Financing through local equity market..........................02 4.96 .......110 .........131 ...........................................................126 ...............■ Public trust of politicians.......■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3........................14 1..................03 4...................................................................■ Quality of scientific research institutions......................93 ..........................■ Malaria incidence* ..11 Business impact of malaria........................120 ...69 ....................................................................08 Secondary enrollment* ......04 11...103 .....................19 Property rights .....12 6........■ Firm-level technology absorption...........................05 8.......................................05 1....................119 .................■ Effectiveness of anti-monopoly policy .............................122 ................120 ........................12 1.............................■ Extent of market dominance ..............■ 2........■ Quality of math and science education ...01 11.......■ Extent of marketing .....01 3..................08 1.........98 ...........105 .■ Firing costs* .....123 ............................86 ....108 .■ Gov’t procurement of advanced tech products .........78 ..06 7.......................■ Hiring and firing practices ..■ Business impact of tuberculosis....03 6.............................73 ........................05 2........117 ................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........07 Capacity for innovation ...■ Efficiency of legal framework in challenging regs ......................01 4.■ Diversion of public funds ..................................■ Willingness to delegate authority ..03 5..........■ Internet access in schools ..............■ Inflation* ....................■ Regulation of securities exchanges ..................119 .........04 9...............01 1......75 ...■ Reliance on professional management .......■ Strength of investor protection*...........100 ....■ Extent of staff training ...■ Soundness of banks ............■ Local availability of research and training services .......129 ...■ Venture capital availability .73 ...............04 8......■ Organized crime.........■ Protection of minority shareholders’ interests ....98 .........46 ...07 5..................................06 5.................................■ Quality of primary education....■ Quality of air transport infrastructure..............■ Judicial independence ...92 .....126 .....................13 1...................114 ..■ University-industry collaboration in R&D .09 6........■ Ease of access to loans .................■ Infant mortality*.............■ Legal rights index*..................■ Internet users* ............................09 Financial market sophistication...................126 ..............................................................................04 3............................................■ Quality of electricity supply .........................05 6..............................................87 .....09 Cooperation in labor-employer relations .........................16 1.....■ Quality of port infrastructure.......80 .......04 1.............09 Local supplier quantity ............................90 ...........................................................05 4..............109 .........■ Production process sophistication .......■ 7th pillar: Labor market efficiency 7...........................07 8...04 2.................03 7...................■ Female participation in labor force*..115 ...............................■ Local supplier quality .............68 ..03 3............05 9.....114 ........■ Time required to start a business* ......■ Strength of auditing and reporting standards .....■ 11th pillar: Business sophistication 11...................................07 4...79 .....119 ............04 12..............■ Burden of customs procedures ..........................107 ...■ Transparency of government policymaking .....39 ...................08 Availability of latest technologies.............................................115 ...............................................■ No....■ Efficiency of legal framework in settling disputes.........■ Quality of roads........

................2 1st pillar: Institutions ...................4........................................3...............................9 Foreign currency regulations...........4..............4....0 Inadequate supply of infrastructure .............................. 2008 ....84 ..........................................................4........................82 ..........................................................4........2 GDP per capita (US$)......56 ..........8 GDP (US$ billions)..............0 GCI 2007–2008 (out of 131).............3....................4...................70 ......76................................0.................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...............................12..........................................1...................3 Tax regulations .......... 2008 .6 Tax rates ....0 Financial market sophistication Goods market efficiency Labor market efficiency Egypt Economies in transition from 1 to 2 The most problematic factors for doing business Inefficient government bureaucracy.71 ..1: Country/Economy Profiles Egypt Key indicators GDP (PPP int'l $) per capita.........................................................87 ...................0 Transition 1–2 1 GCI 2008–2009 (out of 134).......................................................0 9th pillar: Technological readiness.........4 Government instability/coups ..............1 3rd pillar: Macroeconomic stability...........2..... 2008.......12.000 4..........78 .............................9 5th pillar: Higher education and training ..............................................................0 Policy instability....3 Restrictive labor regulations ...............0............................................10..3.4.............9 GDP (PPP) as share (%) of world total................................................4.....77 ...4.....72 .0 12th pillar: Innovation.0 2nd pillar: Infrastructure...........................9 Corruption..........5....... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........9..............8 Crime and theft ..................3......74 .......26 .................2 136 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers......................................................................000 2..................64 8.....................6 6th pillar: Goods market efficiency... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....... 2008...1....... The bars in the figure show the responses weighted according to their rankings.............................4..............0 Inadequately educated workforce.................7......................................................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........................3.................................5 Poor work ethic in national labor force ...........0 Factor driven Basic requirements..88 .........................4.........................8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..........................8 Access to financing ..7.7...............120 ..............4 10th pillar: Market size............................4 Inflation .... 1980–2008 Population (millions)...5 4th pillar: Health and primary education ......4..................................2..........126 ......................5 8th pillar: Financial market sophistication...3..........160..................5 Poor public health .84 .............3.................81 ..3..............0 7th pillar: Labor market efficiency ............000 Egypt Middle East and North Africa 6................162..........55 .......80 ............5 11th pillar: Business sophistication...9.................7.......................................................

.■ Business impact of rules on FDI ....................08 8............■ University-industry collaboration in R&D .....67 ......19 Property rights .....07 9............................07 8.10 1..■ No...................08 11......13 6.............■ 2............02 9................................52 .05 2...................66 ........04 9.73 .......■ Public trust of politicians..........................................■ Legal rights index*...........■ Organized crime...................05 7.........78 .........06 12........................86 ........................■ 10...........04 2......31 .....05 4...........■ Production process sophistication ...................■ Tuberculosis incidence*.................82 ..............56 ....08 Availability of latest technologies.....51 ........97 ....63 .....■ Burden of government regulation........02 Foreign market size index*....08 Secondary enrollment* ............■ Extent of staff training .07 2.........................................02 4................................................01 3......................61 .......................................58 .. of procedures required to start a business* ...■ Strength of investor protection*..........104 ........25 ....56 ........................................85 .....34 ..........................95 ........02 11....57 .................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.................66 ......114 ...........63 ...............02 1..................124 ......■ Transparency of government policymaking .....■ Quality of railroad infrastructure .....06 8........01 1................................................■ Pay and productivity.....■ Quality of the educational system ...................69 .............■ Extent and effect of taxation ............................101 .....04 5.....................01 5.......................■ Business costs of crime and violence .01 Domestic market size index* ...........03 4................01 6................................26 .......85 ..........................................■ Brain drain ......................................15 1............................................96 ......................1 ...........121 .....................06 5.....05 8..................15 Intensity of local competition ............32 .......■ Strength of auditing and reporting standards ......................■ National savings rate*..........................05 6.07 5...■ Inflation* ..........................................................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5......................■ Interest rate spread* ..............■ Willingness to delegate authority ......................................................106 ........73 ...............51 ...........11 1.................04 11...............................................30 ..........................48 ..........37 ...........................................95 .......■ Mobile telephone subscriptions*..10 6........83 ......................04 12....07 4.......■ Flexibility of wage determination..■ 12th pillar: Innovation * Hard data Note: For further details and explanation........................................................................................................68 ...................................■ Education expenditure* ..........121 ...........................07 6.....■ Life expectancy*.........................07 7..52 ....................■ Efficacy of corporate boards ........06 9........................08 4..................03 6.....■ Quality of management schools ...............■ Control of international distribution ..03 7.....60 .....■ Quality of electricity supply .■ Quality of math and science education .................59 ...........66 ..................................................■ State of cluster development .............106 .............06 4..........■ Favoritism in decisions of government officials ..........11 Business impact of malaria.......■ Hiring and firing practices .......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6....88 ....■ Internet access in schools ......................106 ...02 2..............13 1..............................08 6...03 5...........39 ........09 4............92 .........131 .......43 ........■ Quality of roads.71 ............■ Nature of competitive advantage .■ Broadband Internet subscribers*....................05 Government surplus/deficit* ..........................■ Telephone lines* ............09 Local supplier quantity ..............64 ...127 ..........57 .......................■ Malaria incidence* ....■ Wastefulness of government spending...............02 6.....................53 .....■ Degree of customer orientation ...........64 ..................................07 1............05 1.......■ Rigidity of employment*......114 .03 11..............■ 12...09 Financial market sophistication.....39 .............................■ Reliability of police services............18 1......■ Tariff barriers* ..............22 ......26 ..■ Time required to start a business* .................■ 8......................................................93 .01 12....................................■ Ethical behavior of firms .......................................98 .....72 ..........................■ Prevalence of trade barriers...............123 ...............10 4........................68 ..09 6.......................01 2.............................15 ...........................................................................■ 9th pillar: Technological readiness 10th pillar: Market size 10..........................................16 1......54 .............■ Primary enrollment* .............01 7......72 ...........................■ Company spending on R&D .......................04 8.07 Capacity for innovation .......■ Protection of minority shareholders’ interests .................................................................................■ Intellectual property protection...54 ..........06 1..02 3..........................................................02 7.......78 ...............79 .........02 5.........99 .......68 ......03 3..........................................................56 ................■ Ease of access to loans .....03 8...................86 .................................................................■ 7th pillar: Labor market efficiency 7.....................■ Female participation in labor force*.70 .................................■ Quality of scientific research institutions....................45 ........................................................................15 ...............47 ......■ Prevalence of foreign ownership ........06 11.............................■ Internet users* ..■ Quality of primary education................53 .........■ Local availability of research and training services .......12 1.............■ Laws relating to ICT..............................■ Extent of market dominance .............106 ............46 ...■ HIV prevalence*.....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...43 ....■ Utility patents*.......................04 6....■ Venture capital availability .....06 6...................■ Quality of port infrastructure......03 1...............■ Regulation of securities exchanges ..............................123 .................................84 ......................................44 ..................■ Business impact of HIV/AIDS ...................................14 1.05 5............96 ..........50 .............08 1....■ Government debt*............■ Available seat kilometers* ........63 .............................■ Agricultural policy costs ......■ Tertiary enrollment* ...■ Total tax rate* ........................1: Country/Economy Profiles Egypt The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 137 ............................03 2................ 2.......................03 9............81 .....■ Value chain breadth.........................................■ 11th pillar: Business sophistication 11..................04 3.............06 7...................72 ..05 12............................08 7...................................01 11................................■ Quality of air transport infrastructure....................................66 ...■ Extent of marketing ...05 11.............124 ...■ Personal computers* ...............40 ......................................09 Cooperation in labor-employer relations ......69 ..............01 4....................1 .......................................................89 . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....02 8............................■ 9.....41 .■ Burden of customs procedures ...................................■ Business impact of tuberculosis...........55 ......................04 4...80 ..128 ....■ FDI and technology transfer ..............................................■ Availability of scientists and engineers .......■ Firing costs* ..1 ..■ Buyer sophistication ...44 ..............................................01 9...■ Efficiency of legal framework in settling disputes.....08 Quality of overall infrastructure.................................04 1.......06 2....101 .....................................04 7.......■ Financing through local equity market.102 ......09 1............................................03 12......■ Gov’t procurement of advanced tech products ................■ Restriction on capital flows .................17 1................................12 6.14 6............................■ Effectiveness of anti-monopoly policy .......■ Diversion of public funds .11 6....................02 12.■ Soundness of banks ......■ Reliance on professional management .....................................■ Business costs of terrorism.01 8.07 11....................■ Local supplier quality .■ Infant mortality*......57 ..........05 9.....■ Firm-level technology absorption...............■ Efficiency of legal framework in challenging regs .........■ 4..........................................■ Judicial independence ..

...........1....................87 ..............................................000 2.....6 Foreign currency regulations..6 Financial market sophistication Goods market efficiency Labor market efficiency El Salvador Efficiency-driven economies The most problematic factors for doing business Crime and theft ..........6 GDP (PPP) as share (%) of world total............. 1980–2008 Population (millions).............4 11th pillar: Business sophistication....7...........................2 138 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......................3..........5 6th pillar: Goods market efficiency.........4............................91 ................................................3 Poor work ethic in national labor force .000 6......................................................4..4 8th pillar: Financial market sophistication..............................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........7 4th pillar: Health and primary education .............4...................4..................................2......2 Tax regulations ................000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..............4 10th pillar: Market size.............. 2008.................8 5th pillar: Higher education and training .......................................................2..18..........................................................................3.....................................67 ..............5 2nd pillar: Infrastructure.......................06 10......8...............4........0 GDP (US$ billions)....4........................3...70 .....0..... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .3 Inefficient government bureaucracy...........1 Factor driven Basic requirements....................50 ................22..................................................66 ...............................................0 GCI 2007–2008 (out of 131).....................................63 .......61 ....3.................4...................2 3rd pillar: Macroeconomic stability................1 GDP per capita (US$)...............0 Policy instability....................80 .................3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....1 12th pillar: Innovation..................3..5..........113 ....2 9th pillar: Technological readiness............83 ........4... 2008 ....1 Restrictive labor regulations ..............................................0.....5...............................6..........3...................................................................4 7th pillar: Labor market efficiency ...................................0..8 Corruption.......86 ..........4................4 1st pillar: Institutions .......................5 Inadequately educated workforce...9 Government instability/coups ..1 Tax rates ................2.... The bars in the figure show the responses weighted according to their rankings.........51 ............................823............................2.........7 Poor public health .....22.....3 Inflation .......................000 4................................ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.000 XXX El Salvador &&& Latin America and Caribbean 8....95 .81 .......79 ......3..1: Country/Economy Profiles El Salvador Key indicators GDP (PPP int'l $) per capita........................ 2008 .............68 .0 Transition 1–2 1 GCI 2008–2009 (out of 134)..............2.............3...............77 ..........................4 Inadequate supply of infrastructure ...... 2008............................2...................................................................7 Access to financing ....9..4.........14....................................

.....■ Business impact of tuberculosis.06 4..16 1............................................................77 .05 6...67 ......■ Tariff barriers* .80 ...........17 1..........................03 12.09 Financial market sophistication.■ 9th pillar: Technological readiness 10th pillar: Market size 10.........................■ Effectiveness of anti-monopoly policy ..■ State of cluster development .......................................■ Internet users* ......■ Mobile telephone subscriptions*......13 6.02 Foreign market size index*.......77 .....................09 Cooperation in labor-employer relations ..............................78 ...............03 11............................13 1.......................48 ............■ HIV prevalence*......77 ................................................10 6..........................■ Extent of staff training .........■ Extent and effect of taxation ...............38 ....................69 ......■ Quality of the educational system ...........■ Time required to start a business* .........06 9......06 5..............■ Value chain breadth......................53 .04 2......15 Intensity of local competition ............70 ........55 ......02 6...........................56 .............06 7......04 1...............................■ Public trust of politicians....■ 7th pillar: Labor market efficiency 7.....................................................................................89 ..........................................■ FDI and technology transfer .....01 9..........................■ Soundness of banks .40 .........■ Business impact of HIV/AIDS .......09 4.....................07 7...■ Extent of marketing ..................■ Organized crime...08 1..................■ Firm-level technology absorption.....09 1.........................................................................02 9................09 Local supplier quantity ........................■ Willingness to delegate authority ..............08 Secondary enrollment* ...116 ....81 ..............■ Laws relating to ICT......■ Degree of customer orientation .........................43 ..■ Malaria incidence* ....■ Total tax rate* ............■ Ethical behavior of firms ........■ Transparency of government policymaking ....05 7....■ Legal rights index*...........................■ Business impact of rules on FDI .........■ Judicial independence ...........01 8.....................................27 .......■ Burden of government regulation......................51 ..............................................43 .06 8.77 ...........................................29 ..........06 1........■ 8.........■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.............37 ............14 6...35 ...................89 .............■ Quality of electricity supply ......................................08 8..■ Financing through local equity market.....■ Extent of market dominance .....06 6......■ Gov’t procurement of advanced tech products ......08 Availability of latest technologies.............................................03 4..........55 .......80 ...........74 ..........■ Local supplier quality .........100 ...................................................84 ...................■ Brain drain ..................111 ........01 1........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...................■ Quality of scientific research institutions...15 1....................01 4..........71 ......08 6...........106 ............................................■ Quality of primary education..................................■ Quality of math and science education ...............44 ...........09 6..............07 8.........................■ Regulation of securities exchanges ...................04 6..............05 8.................■ Infant mortality*....05 9..................■ No...............................■ Company spending on R&D .............................02 12.........99 .......■ Nature of competitive advantage .......■ Quality of roads.................03 2.........97 ....64 ................■ Quality of railroad infrastructure ..........................05 5....................02 4...........68 ...........125 .............................................................35 ..■ Burden of customs procedures ...03 8..108 .■ 2..............96 .■ Female participation in labor force*........04 5.■ 11th pillar: Business sophistication 11...............................................■ Flexibility of wage determination...........................98 ..............18 1..............■ Quality of port infrastructure..........80 ...........■ Utility patents*.......01 5.....56 ..........................................■ Control of international distribution .............74 ........................12 1... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......05 4.................05 Government surplus/deficit* .......................08 4.............10 4..........................71 .............11 6......................................................................04 9.............................■ Quality of air transport infrastructure.............80 ...■ Efficacy of corporate boards ...■ Production process sophistication ...........................25 ........■ Personal computers* ......131 ................................■ University-industry collaboration in R&D .......02 7......................06 2..................................■ Wastefulness of government spending..............58 ..................................................12 6............101 ...........78 .................................■ Quality of management schools ....19 Property rights ....07 Capacity for innovation ...........................■ 4.90 .....................02 1........■ Availability of scientists and engineers ...............79 ........40 ..................................70 ........................02 2.............27 ..03 3...........................118 ..........61 .11 1......■ Efficiency of legal framework in challenging regs .............83 ....40 ...........08 Quality of overall infrastructure.................82 ................■ Primary enrollment* ....................60 ...........70 ................07 5.....101 .........■ Tuberculosis incidence*................................■ Reliance on professional management .............................77 .............................................■ Tertiary enrollment* ...01 7.....11 Business impact of malaria.....93 ...............................................05 2.................................07 4......92 ........................45 .62 ....■ Strength of investor protection*....■ Ease of access to loans .........................39 ........■ Intellectual property protection...............81 ...............................1: Country/Economy Profiles El Salvador The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 139 ..........■ Education expenditure* ............................................................■ Inflation* ......................04 7..02 11.......51 ........07 9.......85 ..................07 1.......................32 ..............49 ..............02 8........■ Restriction on capital flows ........75 ..............101 ..................110 ........03 6.........................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6............62 ...............■ Business costs of terrorism..07 6.....................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.....■ Broadband Internet subscribers*...........■ 10....................................07 11.....■ 12......08 7.......................................06 11....43 .......................................■ Strength of auditing and reporting standards .............................04 12.............90 ......................07 2.............................................................01 2..81 ..............................................52 ...■ Prevalence of trade barriers...........................................62 ...■ Pay and productivity..■ Prevalence of foreign ownership .........■ Reliability of police services................03 1..........77 .....................85 ...........77 .......■ 9...01 3...21 ..................44 .......■ Diversion of public funds ..................04 8.......01 Domestic market size index* ....................60 ......103 ...........■ Efficiency of legal framework in settling disputes........■ Venture capital availability ...............55 .........14 1..58 .....■ Protection of minority shareholders’ interests ..............■ Firing costs* .......................................■ Government debt*............03 7.............05 11.......... 2..01 12.......04 4...............................70 ....36 .......■ Available seat kilometers* ................................................04 3..................................................06 12.....■ Telephone lines* .■ Internet access in schools .............................71 ..04 11......■ National savings rate*......................10 1...................121 ................01 11......■ Business costs of crime and violence ............■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....■ Life expectancy*..........................................................02 5..............................■ Rigidity of employment*..................■ Favoritism in decisions of government officials ....................82 .........................94 .................................................■ Local availability of research and training services ...83 .................................................................■ Hiring and firing practices .........................................................................99 ......03 9.. of procedures required to start a business* .........■ Interest rate spread* ....■ Buyer sophistication ..........01 6.............102 .......05 1..............■ Agricultural policy costs ............133 ....................................08 11...18 ......................03 5.............87 ..05 12..60 ...94 ....................02 3.........

..............6 Financial market sophistication Goods market efficiency Labor market efficiency Estonia Innovation-driven economies The most problematic factors for doing business Access to financing .............21 ..........0........................7 Policy instability.................94 ............5.1 6th pillar: Goods market efficiency............................4.4.............4.........................................32 .6............... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....................................................................8 9th pillar: Technological readiness..........................................................1......27 .......................2 GDP per capita (US$)..7 Inadequately educated workforce.............0 140 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.....1 1st pillar: Institutions ..........3 Inefficient government bureaucracy....4..........................21 .....16 .....10................................37 ..47 ......2. 2008 ....................................................9..7 Factor driven Basic requirements........7 Crime and theft ..............2 Foreign currency regulations............................................................................34 . 1980–2008 Population (millions)...48 ....................... 2008....................3..........29 .....4................................................................9 4th pillar: Health and primary education ..........1 GDP (PPP) as share (%) of world total.....................................................................................4.........................5.....17........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010........6........000 20.6........6 Poor work ethic in national labor force ............299. 2008......0........................7 GCI 2007–2008 (out of 131)....4 Poor public health ................ 2008 .....................4.. The bars in the figure show the responses weighted according to their rankings.............................21............4.....................................3 12th pillar: Innovation........7 3rd pillar: Macroeconomic stability..........4.............8 Inflation .....3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....................................................35 ..........4 Government instability/coups .5....1 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....5 10th pillar: Market size.......31 ....................28 ....4..............4......42 ...........5 Tax regulations ...3. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...........5 Restrictive labor regulations .........34 .....................................9 2nd pillar: Infrastructure.........................0 11th pillar: Business sophistication.................6 Tax rates ...........................2.............28 ...........................5......4...........................................04 40.............27 .......................................3 GDP (US$ billions)...................................8 7th pillar: Labor market efficiency .................5 Corruption......1: Country/Economy Profiles Estonia Key indicators GDP (PPP int'l $) per capita...11......................................0.......................................6...9 8th pillar: Financial market sophistication....................................4...............000 10........................10.............1....000 Estonia OECD 30...............9 Inadequate supply of infrastructure ..............................6 Transition 1–2 1 GCI 2008–2009 (out of 134)........................23............1................7 5th pillar: Higher education and training ...............

.......■ Business impact of HIV/AIDS ....................................■ Organized crime........04 7.......................71 .....3 ..............■ Gov’t procurement of advanced tech products .............................08 Quality of overall infrastructure.............................12 ..................■ Quality of roads...........09 Local supplier quantity ...............■ Quality of management schools ..■ Quality of railroad infrastructure ....■ Protection of minority shareholders’ interests .■ Quality of scientific research institutions.............................................1 ...............................................■ Local availability of research and training services ................................■ FDI and technology transfer ..........06 1...........................................■ Agricultural policy costs .....■ 7th pillar: Labor market efficiency 7.85 .02 7........................01 2..........49 ......15 ..119 ...................■ Quality of primary education.....■ Wastefulness of government spending.......................................................■ Infant mortality*.......18 ......36 ................05 8...16 1...................01 4..........03 12...............05 Government surplus/deficit* .■ Quality of air transport infrastructure...■ Prevalence of trade barriers.■ Judicial independence .....................................................................................05 12.............34 ............■ State of cluster development ........................■ Control of international distribution .............19 ..............39 .....■ Tariff barriers* ..86 ..........29 ........26 .............................................06 8............■ Pay and productivity..........................................................01 1.......■ Effectiveness of anti-monopoly policy .....................02 3.............38 .....14 6.05 4...........................................................................08 1.........02 6..................■ Strength of investor protection*........06 6.......................60 ..........................................04 12.....06 11.03 3...........................................17 .................02 12.■ Laws relating to ICT..36 ..03 2........ of procedures required to start a business* .................................17 .............18 1.....................■ Ease of access to loans ..21 ...............................11 6...05 7....................................................62 .■ Inflation* ..............04 11....................................59 .........■ Diversion of public funds ...01 7.........................27 ..............................■ Business impact of rules on FDI ................■ Venture capital availability ..............03 1.........21 .................■ Telephone lines* ..........................................................................................■ Primary enrollment* ...43 ......07 9...■ 2..............■ Quality of port infrastructure.......................5 ..................1: Country/Economy Profiles Estonia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 141 ...........01 11..............................40 ..........02 11...............................04 1.■ Tertiary enrollment* ...09 6................................67 ...............44 ...47 .................08 Secondary enrollment* ......■ 10...16 .................118 ...07 8...............................■ Efficacy of corporate boards .................... 2....07 7...10 ....■ University-industry collaboration in R&D .............■ Local supplier quality .......03 8............04 5................................................■ 12...........................06 4...............■ Nature of competitive advantage .............................................■ Burden of customs procedures .......03 5................................■ Intellectual property protection..........87 .....................................■ Life expectancy*....04 2..................58 .................42 .60 .................■ Ethical behavior of firms ..............................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.............39 ............■ Internet access in schools ...........32 ..........05 5..........■ Malaria incidence* ...06 9.............................■ Time required to start a business* ......................................................................................06 5...............27 .■ Education expenditure* ........08 Availability of latest technologies............01 3...39 ...............■ Burden of government regulation.27 ..............06 7.....................13 6.....1 ....10 .....07 4..................■ Financing through local equity market......■ Firm-level technology absorption...15 Intensity of local competition ......51 .26 ...15 .■ Willingness to delegate authority .■ 9.......12 6...........03 9.................■ Business impact of tuberculosis................04 4.39 .....................................................■ Quality of math and science education .....05 9...................■ 4.......................................11 1.......................03 6..................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.............■ Reliability of police services............■ Extent of staff training ....................13 1.35 ............32 .15 1.............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5................................■ Prevalence of foreign ownership ..............43 ..............................................■ Extent of market dominance ....02 5................................37 ..............................24 ............30 .......................02 9...................09 1......17 1.........................................■ No............59 ...........36 ......................■ Available seat kilometers* ............15 .........................01 Domestic market size index* .............................................08 6.......33 ..........................11 Business impact of malaria...04 9..................■ Quality of the educational system .07 6....26 ................................07 11..96 ...................■ Firing costs* ....■ Strength of auditing and reporting standards ............34 .....07 2.............................................05 2..............03 4.....................08 4..................19 Property rights .......................03 11.........05 6.27 ........................................................................01 9........06 12............................■ Utility patents*...............................■ Tuberculosis incidence*.............■ Favoritism in decisions of government officials .....................01 6.........................■ Government debt*.■ Flexibility of wage determination............22 ......63 ...........................27 ........................■ Company spending on R&D ................01 8.............77 .....................■ National savings rate*....09 Financial market sophistication......................04 6..................■ Interest rate spread* .......■ Soundness of banks .......................................................................................■ Total tax rate* ..................■ Legal rights index*.....06 2..■ Availability of scientists and engineers ...........................■ Restriction on capital flows ....7 .....34 .50 ................................16 ...................■ Business costs of terrorism..........................08 11.........................■ Buyer sophistication ............................■ Internet users* .............24 .............87 .............29 ....13 ...59 ............................07 1....................................■ Extent of marketing ........51 ........................12 1...........01 12... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..................................09 4.........................05 11....52 ..............■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.................08 7.....09 Cooperation in labor-employer relations .■ Rigidity of employment*..........................■ Efficiency of legal framework in challenging regs .....■ Regulation of securities exchanges ..26 ...................58 .............4 .17 ..................................................77 ..■ Hiring and firing practices .....38 ...49 .2 ...................................................................02 8..40 .02 Foreign market size index*.82 ...............59 ....................51 ....■ Mobile telephone subscriptions*........21 ........................................04 3.................22 ...........02 4........■ Brain drain .............■ Quality of electricity supply ......................62 ...................10 1....................■ Female participation in labor force*.........41 ........02 1.32 ...........56 .....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...........■ Efficiency of legal framework in settling disputes........04 8........■ Business costs of crime and violence ....25 ...................10 6........08 8.......................03 7......3 ........■ HIV prevalence*.......07 5............■ 8...35 ...05 1....11 ..........................8 ..........51 ................51 .....02 2.■ Broadband Internet subscribers*..■ Transparency of government policymaking .................22 ..■ Personal computers* .....................■ 9th pillar: Technological readiness 10th pillar: Market size 10..............................■ Reliance on professional management .......................■ Value chain breadth................................................3 ....................■ Public trust of politicians......34 ............■ Degree of customer orientation .................29 .............106 ...................................■ Extent and effect of taxation ..01 5..07 Capacity for innovation .........25 ...........■ 11th pillar: Business sophistication 11.......■ Production process sophistication .................................................14 1...............10 4.............

.....................4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..............7..0.3......3................112 .3 8th pillar: Financial market sophistication..........................................................................3 5th pillar: Higher education and training ..........................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....3...................106 ..... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..........6 1st pillar: Institutions .......................000 Ethiopia Sub-Saharan Africa 1.............111 ....7 Crime and theft ...0... 1980–2008 Population (millions).....................2..................................324.......................3.......115 ..........131 ........3..............................0.............4 Transition 1–2 1 GCI 2008–2009 (out of 134)..............0.........................1 Inadequately educated workforce.........96 ..4....75 ...................3 10th pillar: Market size......3.......76 ........ 2008......3...3.........................12.........25.....1: Country/Economy Profiles Ethiopia Key indicators GDP (PPP int'l $) per capita.........................9 3rd pillar: Macroeconomic stability............................................ 2008........4 Tax rates .8 142 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........ The bars in the figure show the responses weighted according to their rankings........1 Poor work ethic in national labor force .....................................................................16... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...............69 ...............1 Restrictive labor regulations .......3..........................10 2.........................................127 .......000 500 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.................................................3.......7 Policy instability...............................120 ........................................ 2008 ......6..............118 .........................3 12th pillar: Innovation..8 2nd pillar: Infrastructure.9.....................500 1.......................... 2008 .........................3.120 ......3...........7 Foreign currency regulations.........8 7th pillar: Labor market efficiency ...............13.............................................0 Inadequate supply of infrastructure .2 GDP (US$ billions)....................123 ............3...................0 11th pillar: Business sophistication.........................2.........0 Access to financing .............................4...6..............................2..7 GDP per capita (US$).......................7 Financial market sophistication Goods market efficiency Labor market efficiency Ethiopia Factor-driven economies The most problematic factors for doing business Inflation .......................3..7 6th pillar: Goods market efficiency........................................................125 ............3 Inefficient government bureaucracy.......................................85........................................2 Government instability/coups ........0 GDP (PPP) as share (%) of world total......................................................................4 GCI 2007–2008 (out of 131)......1 9th pillar: Technological readiness.............2............116 .9 Corruption........16..............................7 Tax regulations ..118 .2........121 ...3 Poor public health ..3..................3 Factor driven Basic requirements............................................................................8 4th pillar: Health and primary education ...............................0......................

.............■ Firing costs* .....................................02 11.....■ Buyer sophistication ....04 4..................15 Intensity of local competition ....■ Primary enrollment* ........■ Firm-level technology absorption............................09 4.....................12 1....■ Protection of minority shareholders’ interests ...............■ Production process sophistication .......................................110 .......104 ................................................................■ 10th pillar: Market size 10............■ 10.......121 ................................................09 1...10 1........130 ....09 6.......■ Efficiency of legal framework in challenging regs ...■ Mobile telephone subscriptions*...........95 ...121 .......................■ Female participation in labor force*.............■ Venture capital availability ............................■ Quality of port infrastructure......................................60 .....................■ Available seat kilometers* .....02 7...121 .....01 Domestic market size index* ............■ Local availability of research and training services ..............124 ........................02 9....124 .■ Burden of customs procedures ........44 .....107 ..............................06 5.............■ 9th pillar: Technological readiness 9...............................26 ..........................01 12................................130 ..04 7...The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1......................42 .............................................■ Education expenditure* ...............119 ..............09 Local supplier quantity ..117 ...................16 1..■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....02 3.96 ...112 ..................■ Business impact of tuberculosis.......06 2..02 8.........................................59 .....................■ Tariff barriers* ...■ 4...............119 ...■ University-industry collaboration in R&D ...■ HIV prevalence*..................■ Quality of air transport infrastructure...............................................04 11....■ Reliance on professional management ...96 ............■ State of cluster development ..........................................12 6...........................28 ..■ Pay and productivity........................■ Organized crime...................83 .......05 8..........................................06 9.92 .........................77 .■ Extent and effect of taxation ........10 6..■ Time required to start a business* ...........09 Financial market sophistication...............111 ....■ Gov’t procurement of advanced tech products ................93 ...............109 ...08 11........................96 .............................■ Rigidity of employment*...17 1..130 .........■ Prevalence of trade barriers.06 8......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....58 ..........07 11........................................116 ........80 ....05 2...........105 ....97 ..........98 .....■ Restriction on capital flows .......03 3................................■ Effectiveness of anti-monopoly policy .....■ Regulation of securities exchanges ....................................................■ Business impact of rules on FDI ..................................................................87 ..............................103 ..................123 ....■ Efficacy of corporate boards .75 ..................■ Hiring and firing practices .........................04 3....................106 .......................................■ Tertiary enrollment* ........■ Burden of government regulation.....80 .14 1.130 ................................01 8...............................■ Quality of roads...............................■ Business impact of HIV/AIDS ......■ Favoritism in decisions of government officials .....................124 ...........■ Efficiency of legal framework in settling disputes......03 5..01 1..................07 4..................05 5......................118 ................................113 ......■ Laws relating to ICT...............■ Total tax rate* ........■ National savings rate*.................117 ..............01 4....................................07 9.........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6......02 Foreign market size index*........19 Property rights .....05 12...................................................74 ................08 8...................03 6.....................................01 7.......06 12...................113 .............. of procedures required to start a business* ...........■ Degree of customer orientation ................14 6..........67 ...126 ......05 6......02 5...124 ......................06 11.01 6..08 1.............63 ............................01 3............■ Agricultural policy costs ..............■ Wastefulness of government spending...........■ Telephone lines* ..............................05 7................07 8........123 .......130 ..............04 9....13 1......03 7......................■ Brain drain ........68 ...............03 12.................119 .....................■ Flexibility of wage determination..................................■ Malaria incidence* ................122 ...............................■ Utility patents*...............■ Intellectual property protection...........95 ........02 6...........74 .111 .67 ..09 Cooperation in labor-employer relations ......123 ........1: Country/Economy Profiles Ethiopia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 143 .........■ Ethical behavior of firms .............■ Quality of management schools ......■ Internet users* ................03 1........■ Diversion of public funds ................110 .......06 6......................................................................68 ....23 ...........................15 1...........................91 ......■ Interest rate spread* .............■ Extent of staff training ..........62 ............46 ........64 ..............................................61 .....................................04 12...................10 4..........■ Quality of electricity supply .................01 2...........................................................■ 7th pillar: Labor market efficiency 7......................■ Transparency of government policymaking .....................83 .........114 .......................07 5.......01 9...............■ Soundness of banks ...............■ Business costs of terrorism...............■ Strength of investor protection*...............................................11 6.............65 ...................................63 .................. 2...05 Government surplus/deficit* .107 ...................................................126 .....101 ..63 ......96 ...................■ Public trust of politicians......08 Availability of latest technologies...................02 2..90 .................08 Secondary enrollment* ..■ Government debt*......■ Quality of primary education............04 1...............■ Willingness to delegate authority ..132 ..............................01 11......................78 .........05 11...............61 .................02 4................................■ Legal rights index*.........11 Business impact of malaria.........13 6.........110 ......18 1..................08 7..........04 6.........115 ......................08 4...83 ...............■ Extent of marketing .........■ 11th pillar: Business sophistication 11..............08 Quality of overall infrastructure..■ Infant mortality*........07 7...............................■ Financing through local equity market..............■ Judicial independence .................116 ..........................................................05 4..................■ FDI and technology transfer ...122 ........74 .....................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation......02 12.............................................■ Quality of railroad infrastructure ....■ 12......89 .........58 ..........................................................06 1...04 5..................114 .......06 7...........................03 4............................123 ...........................75 ......................121 ..............■ Prevalence of foreign ownership .............................................■ Ease of access to loans .........................06 4.............................11 1........■ Extent of market dominance ...01 5.■ Internet access in schools ........■ Value chain breadth...07 6.................106 .■ No.............08 6..................■ Company spending on R&D ..........02 1................■ 8.............03 9..................114 ...............03 2.....129 ..■ Nature of competitive advantage ..............07 2..................................................03 8...........................■ Reliability of police services.............■ Broadband Internet subscribers*......05 9...■ Inflation* .......■ Control of international distribution .................................................■ Quality of scientific research institutions...........04 8...............119 ......07 1.......■ Tuberculosis incidence*................07 Capacity for innovation ..............04 2.............................■ Local supplier quality .....................................■ Personal computers* ....90 .................96 ..■ Business costs of crime and violence ................03 11...........................................................■ Strength of auditing and reporting standards ............110 .......■ Quality of math and science education ....................80 ............................■ 2..70 .....................124 ....................■ Quality of the educational system ........120 ......................126 .■ Life expectancy*...............05 1...........................■ Availability of scientists and engineers ......................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..118 .

.....................6 .........12 .12..........................................................................9 3rd pillar: Macroeconomic stability..0 6th pillar: Goods market efficiency..........................0 GDP per capita (US$)...........5......................................................22............................5............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..........0....................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...........6..............17..................0 1st pillar: Institutions .....5 144 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.............. 2008...7 ...............7 Inadequately educated workforce...3 ......5..................................................7 Inefficient government bureaucracy......................................................................................9 .................1 .....................0...............................3........................0 7th pillar: Labor market efficiency ......9 Tax regulations .............................................5.....6 Government instability/coups .......4 12th pillar: Innovation.5.............6..............53 ..........4 Crime and theft .....................5 Financial market sophistication Goods market efficiency Labor market efficiency Finland Innovation-driven economies The most problematic factors for doing business Tax rates ........6 .......4 ............0.......................000 10.........0.8 4th pillar: Health and primary education ..................................1 ...............9 Inflation ..................28 40......................................6 Restrictive labor regulations ............8 Policy instability.......................10 .............3.....................1.........................6 10th pillar: Market size......................5 Factor driven Basic requirements.........000 20..................19 ............3 GDP (US$ billions)........................................................3..........................1......................................10 ..4 Transition 1–2 1 GCI 2008–2009 (out of 134)................4.....5.......1 ...................................6...5...............................0 2nd pillar: Infrastructure.5....................................2 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..6.........23 .........6..............2.................989............5 Poor public health ...........51...........................3 9th pillar: Technological readiness......2..........2 Foreign currency regulations...5......0..5................................................................1 Corruption....6 Access to financing .........1: Country/Economy Profiles Finland Key indicators GDP (PPP int'l $) per capita.5.21.......................... 2008..........................6 ............5 11th pillar: Business sophistication...............................................9 Inadequate supply of infrastructure .......5....9 Poor work ethic in national labor force ..........000 Finland OECD 30.............. 1980–2008 Population (millions).........2 5th pillar: Higher education and training .............................................................6 ...........4............................4 GDP (PPP) as share (%) of world total..........9 8th pillar: Financial market sophistication........ The bars in the figure show the responses weighted according to their rankings...........................................5 GCI 2007–2008 (out of 131)...... 2008 ....... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .......5......12 ..274................. 2008 ......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..

..........09 1.....46 .............■ Quality of scientific research institutions............■ Reliability of police services........05 4...08 11..........■ Tuberculosis incidence*....................03 7.02 9..................................................06 11...■ Efficiency of legal framework in challenging regs ......■ Business costs of terrorism....................................■ 4.........■ Tertiary enrollment* ..................02 Foreign market size index*..........................05 5.......04 9....02 8...........02 7.04 11.........................................................39 .................................12 ...........■ 9th pillar: Technological readiness 10th pillar: Market size 10.■ Firm-level technology absorption......46 .......27 .......................................................■ Control of international distribution .................49 .....3 ............05 6..........■ Effectiveness of anti-monopoly policy ..■ Efficiency of legal framework in settling disputes........■ Extent and effect of taxation ................................................03 1...........................■ Reliance on professional management ...............6 .■ Telephone lines* .4 .........14 6...............08 Secondary enrollment* ...................■ Intellectual property protection..................01 5...69 ..05 8................02 4..........................83 ...■ Strength of investor protection*.................■ Utility patents*..01 9..................................3 ...................07 8..............................15 .....................09 4.07 11............3 ...........................................................................05 1................13 .......11 ..............................■ Soundness of banks ...........16 1..................................................25 .......7 ...06 6............................■ Flexibility of wage determination....................12 .............................3 .......3 ...06 9.........................6 ..................11 6..4 ........12 ...............................................5 .13 1.........................11 Business impact of malaria................................■ Government debt*.................■ Willingness to delegate authority ...............................■ Financing through local equity market...............24 .................■ Interest rate spread* .........1 .......................7 .......■ Local availability of research and training services ......................■ Venture capital availability .................■ Value chain breadth...................................3 ...........................03 2...................9 ................................06 5...10 6...........02 6................................04 6.......■ Broadband Internet subscribers*.■ Ethical behavior of firms .......................02 3.............5 ...........................12 6.................18 1..............8 .......................7 ..............31 .......■ Pay and productivity........31 ............■ Quality of air transport infrastructure...19 .3 ...................9 ....................................18 .............08 8.........................01 7.......■ 12th pillar: Innovation * Hard data Note: For further details and explanation..........................................7 ...............................................04 4...................................1 ...............■ Brain drain ............■ Gov’t procurement of advanced tech products ................................................■ 8..5 ...........................10 ..........................................■ State of cluster development .....71 ...............04 7................05 Government surplus/deficit* ......09 Financial market sophistication.....................................■ Company spending on R&D ...................6 .........................................■ 3rd pillar: Macroeconomic stability 3...............■ Regulation of securities exchanges ....1 ................................31 ...............1 ...................................05 12.....................■ Extent of marketing ......■ Judicial independence ...7 .....■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.........01 1..............................04 3.........................■ University-industry collaboration in R&D .................04 12.......■ Business impact of tuberculosis....03 8.■ Prevalence of foreign ownership ..............06 1............................................................................................■ Business impact of rules on FDI .........10 4.........■ Firing costs* .....07 2.■ Extent of market dominance ..................................■ 12.............16 ......06 2.04 2....................38 .................■ 11th pillar: Business sophistication 11................17 1...............■ Available seat kilometers* .................■ Efficacy of corporate boards .■ Nature of competitive advantage .....03 3........■ Transparency of government policymaking .....................................■ Personal computers* ................■ Rigidity of employment*...........■ Availability of scientists and engineers ......................01 6.........53 ......■ Inflation* ..................5 ..............2 ........02 2................................9 ............................■ Life expectancy*....■ Buyer sophistication ............7 ....4 ........................36 ................07 7.................................9 ................05 11..........08 1............................■ 10...........................■ Female participation in labor force*.........4 .............1: Country/Economy Profiles Finland The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 145 ....................................................04 5..11 1......01 12..........125 .....................................■ Business impact of HIV/AIDS ..............7 .....................5 ......■ Burden of government regulation..........1 .■ Ease of access to loans ..................................................01 2..........................109 ...........03 9.................■ FDI and technology transfer .6 ..02 1...............14 1.............15 1.07 4...................■ Diversion of public funds .42 ..3 .......5 ...............07 Capacity for innovation ............... 2..01 11..............................................10 ......■ Quality of primary education..........■ No.....4 ........07 9.............................................................13 6.......................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.07 1.....................80 ....................4 ....08 4...■ Agricultural policy costs ....................04 1........03 5........................................4 ..........................08 Availability of latest technologies....7 .......03 11........06 4.■ Quality of roads.................................................01 Domestic market size index* .......................■ Restriction on capital flows ..05 9.....01 8..................42 .....3 .............05 2..13 ...................■ Protection of minority shareholders’ interests ............................■ Wastefulness of government spending......■ 2nd pillar: Infrastructure 2.............................................■ Quality of railroad infrastructure ..............■ Extent of staff training .................................19 Property rights ........08 7.............86 ....................................02 11.07 5......■ Quality of math and science education ......12 ..........................■ Favoritism in decisions of government officials ...................■ Time required to start a business* ......■ Degree of customer orientation ...................................■ Laws relating to ICT..............■ Total tax rate* .02 12.............................■ Production process sophistication ....................................01 4........................................................■ Quality of the educational system ............................■ 7th pillar: Labor market efficiency 7..■ Tariff barriers* .......02 5..07 6...08 Quality of overall infrastructure...■ Internet access in schools ........10 1.....4 ...............................9 ..............8 ...13 ...15 ....................................................■ Primary enrollment* .........................................■ Public trust of politicians............06 7..........3 ....................■ Prevalence of trade barriers....15 Intensity of local competition ..................36 .......................................10 .......05 7....09 6......2 ...........................3 ....■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6....6 ...........18 ....................................8 ..■ 9......................................................■ Quality of management schools ................102 .......................................08 6...................06 12...■ Burden of customs procedures ..........■ Mobile telephone subscriptions*..■ Organized crime..........................................................................■ Strength of auditing and reporting standards ........................22 .................17 ..■ Quality of port infrastructure.....6 ...04 8.................................................................03 12...................................12 1....09 Local supplier quantity ........■ Local supplier quality ....15 .■ Hiring and firing practices .....................■ National savings rate*...............51 ...■ Infant mortality*........03 4....19 ............9 ...............18 ....................■ Internet users* ..........................■ Malaria incidence* ...■ HIV prevalence*.....1 ..14 .....06 8..■ Legal rights index*.............■ Quality of electricity supply ....01 3.........■ Business costs of crime and violence ..... of procedures required to start a business* ........6 .......09 Cooperation in labor-employer relations .....■ Education expenditure* ....................03 6........9 ....41 .......6 ............71 .....................5 .........

........................25 .............5......................................................................................16 .......5 Inadequately educated workforce.............................11 ..................5..................5.................3.000 20...............................1 Transition 1–2 1 GCI 2008–2009 (out of 134).......3 6th pillar: Goods market efficiency............9 GDP (US$ billions)......2................................17......015........6 1st pillar: Institutions .........15 ........................................3 12th pillar: Innovation................................4...5.......................26 .........5.1..9 9th pillar: Technological readiness........................2 Government instability/coups ..................................................18 ..............................2.........000 France OECD 30......1.........16 ......5 3rd pillar: Macroeconomic stability.2 GCI 2007–2008 (out of 131)....6......0.................................................. 2008....9 11th pillar: Business sophistication......5............. 2008.....................................5........................................8 Policy instability........67 ..........5.1: Country/Economy Profiles France Key indicators GDP (PPP int'l $) per capita........................ 1980–2008 Population (millions)...4.........................................3 Foreign currency regulations..........9 GDP (PPP) as share (%) of world total.....1..............1.....................4...................58 .............................1 5th pillar: Higher education and training ..21 ...4 8th pillar: Financial market sophistication..........8 ..........23...46..........6...............................................................................................................4 Access to financing ..........0................................................................7 Corruption...........3 Poor public health ...3 ...........0 2nd pillar: Infrastructure.................24 ......7 4th pillar: Health and primary education ..........7 GDP per capita (US$).................................865....5..4...15 ...........15 .... 2008 .........................................................08 40.........2 10th pillar: Market size...000 10............5 Financial market sophistication Goods market efficiency Labor market efficiency France Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ..........4...........................9 7th pillar: Labor market efficiency ...............61....................18 .....................................3 Inefficient government bureaucracy....7 Inadequate supply of infrastructure .......8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........7 Tax rates ..................5 Crime and theft ......5.0....2 Factor driven Basic requirements...............................................2 146 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..............5.............................................9........................10 ..............4...2......3 Inflation ...........7 Poor work ethic in national labor force ...................1............. The bars in the figure show the responses weighted according to their rankings......3 Tax regulations .......3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......... 2008 ...........15...........16 .............................................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..............................................17........

.........■ Tariff barriers* ......05 8.................5 ...................08 Quality of overall infrastructure........■ Nature of competitive advantage ..............................■ National savings rate*...............■ Internet users* .■ 9.........■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..17 ..■ Soundness of banks ....................9 ...............................................66 ......07 Capacity for innovation ...07 8..09 Financial market sophistication......................... of procedures required to start a business* ............■ Inflation* ...17 ............................13 1..92 ..................03 1..................05 11.......■ Flexibility of wage determination.........................13 6...........09 Local supplier quantity .................116 ..........04 11............02 8................................116 ....05 6................10 4....................1: Country/Economy Profiles France The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 147 .....................03 3...........57 ...................■ 7th pillar: Labor market efficiency 7.........................42 ...............31 ..........................................04 3...................05 12.............................................■ Personal computers* ....■ Business impact of tuberculosis.■ Transparency of government policymaking ...............■ Strength of auditing and reporting standards ....................................25 ...................01 2.......01 1.............................................126 ....■ Quality of railroad infrastructure .........................................02 12...08 8............07 6................08 11...................■ 3rd pillar: Macroeconomic stability 3............................01 8..........................■ Efficiency of legal framework in challenging regs ....6 .......................................................................................11 .....37 ............................31 ......31 ...■ Quality of math and science education ..■ Infant mortality*....9 ...29 .............09 Cooperation in labor-employer relations ......................................06 11.........................26 ...................27 ...............01 7......■ No................................................■ Business impact of rules on FDI .....■ Availability of scientists and engineers .21 ..........................42 .................01 Domestic market size index* ..........................................■ Efficacy of corporate boards ...............■ Utility patents*........■ State of cluster development ..12 1.............16 .....................11 ........■ Quality of port infrastructure................................10 ...........1 ..■ Favoritism in decisions of government officials ............■ Local availability of research and training services .......■ Strength of investor protection*.................■ Interest rate spread* ...................3 .55 .15 ........10 ...........04 7.....................................................70 ...10 .......................03 2.............■ Production process sophistication ..The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.................■ Buyer sophistication ...■ Organized crime...............14 1.........■ Mobile telephone subscriptions*.........42 ...........................■ Life expectancy*...................■ Rigidity of employment*.......03 8.......28 .........................................03 12...................■ Internet access in schools ....15 ..06 7.....07 4.......■ Protection of minority shareholders’ interests ..........06 4............24 ....04 4....■ Prevalence of trade barriers...................■ FDI and technology transfer .■ Judicial independence ...........................................■ University-industry collaboration in R&D ......................14 .....■ 8...................■ HIV prevalence*......07 2......................................25 ...........08 4................92 ...04 2...07 9.................87 ..........................113 ....................■ Laws relating to ICT..................................................■ Hiring and firing practices ...............35 ............................02 2.........................■ 4...36 ......8 .......................■ Legal rights index*.....................................02 1.....................................■ Wastefulness of government spending......................■ Restriction on capital flows ....................05 9....................■ Tertiary enrollment* ..................■ Burden of customs procedures .........19 ...119 ............................................14 6.......................02 3..............■ Primary enrollment* ................40 .03 6..■ Regulation of securities exchanges ............40 ..■ Pay and productivity....................37 ..............05 4.......................33 ..........................7 ...01 4..........■ Firm-level technology absorption...................4 ...10 ....■ 9th pillar: Technological readiness 10th pillar: Market size 10..........11 Business impact of malaria........................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..............02 Foreign market size index*.......06 2.■ Local supplier quality .............7 ...................................■ Quality of electricity supply .01 12...........................03 5........■ Telephone lines* ..04 9..................................■ Quality of roads...............15 .........................26 ...........................................74 ...................■ Extent and effect of taxation .09 4.................................................................................■ Ease of access to loans ...18 1...........................24 ...............................11 ....■ Available seat kilometers* .......................................45 ....................5 ............■ Firing costs* .................11 .■ Public trust of politicians..............02 4...................■ Value chain breadth.............■ Quality of scientific research institutions.....................................08 6......17 ............■ Company spending on R&D ..■ Ethical behavior of firms .............8 .......................................02 11......................................................9 ...05 1......08 7..17 .................■ Business costs of crime and violence ...............................................................42 .....■ Business impact of HIV/AIDS ................................................12 6...........................7 ......01 9...13 ............■ Quality of the educational system ...............................■ Intellectual property protection........29 ....■ Quality of primary education...........■ Efficiency of legal framework in settling disputes.......15 Intensity of local competition ..............................................17 .........04 12...................06 6..........................................■ Extent of market dominance .................................■ Education expenditure* .........07 5......54 ....32 ................................................27 ...■ 12th pillar: Innovation * Hard data Note: For further details and explanation..........2 ................62 .................................■ 10..............02 6....................................29 ......11 1.....................35 .................09 1..................■ Reliance on professional management ..............10 6......51 ................07 7.■ 12..................................01 6.........................................................................04 1..■ Quality of air transport infrastructure...............................................................25 ....................................................5 ...........08 1.........127 ................01 5....10 1........................12 .........03 9....■ Gov’t procurement of advanced tech products .05 2.........■ Burden of government regulation...■ Diversion of public funds ..........................36 ...............55 .......06 8...................... 2.......................06 9...................■ Control of international distribution ...................8 ...........■ Financing through local equity market...........■ 11th pillar: Business sophistication 11.............................16 1....■ Quality of management schools ....■ Time required to start a business* ........05 7........10 ..................42 .44 ..............32 ......■ Degree of customer orientation .............5 ........................................................05 5........03 4..............8 ................18 ..19 Property rights ....■ Reliability of police services........................41 ................■ Agricultural policy costs ......................1 .........49 ......................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.06 5.............11 ....■ Brain drain ....■ Broadband Internet subscribers*.................03 7.......15 1....01 3.................47 ............03 11.............■ Business costs of terrorism.....................8 ...06 12....04 8.08 Availability of latest technologies................15 ............5 .......07 11.......■ Extent of marketing ..■ Prevalence of foreign ownership ..........■ Tuberculosis incidence*...........25 .........07 1.............11 6..............■ Willingness to delegate authority .....................02 9.......04 5.................17 1...............■ Effectiveness of anti-monopoly policy ......01 11..............................59 ..76 .......■ Total tax rate* ..............08 Secondary enrollment* ..■ Venture capital availability ...........22 ..............04 6...........■ Government debt*.........02 7........31 ..............■ Extent of staff training .......................02 5.........09 6.....................................05 Government surplus/deficit* .................06 1....................29 ...■ Malaria incidence* ...............................................................■ 2nd pillar: Infrastructure 2.15 .......■ Female participation in labor force*....

... 1980–2008 Population (millions)...........7..3 7th pillar: Labor market efficiency ..........................9 9th pillar: Technological readiness............................3................................9 Foreign currency regulations...16..2....7 Poor work ethic in national labor force ....72 ................................................................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .................4...............................................6 GDP (PPP) as share (%) of world total.........3......................00 2.....................................................................................9 GCI 2007–2008 (out of 131)................495................76 ............3 Government instability/coups ........4..1.....6 Factor driven Basic requirements..............6 Inadequately educated workforce.............26 .........131 . 2008.4 6th pillar: Goods market efficiency......4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......3......................................4.................................9 Tax regulations .................................5 5th pillar: Higher education and training ........................................27 .......................3......................81 ...............8 8th pillar: Financial market sophistication.......4...7 Poor public health ..3....8 GDP per capita (US$)......................117 ...3...........................0.........24...............2..6 Corruption.............1......0.......2. The Key indicators GDP (PPP int’l $) per capita..............4............500 1......000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.....100 ........................1 Policy instability......2. 2008 ...................0 3rd pillar: Macroeconomic stability..60 ..............0...................................................................9.................60 ....................1.....................6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........4......................................................................... The bars in the figure show the responses weighted according to their rankings....................................................................4..........102 .........................3 1st pillar: Institutions .6 Tax rates ...................1 Financial market sophistication Goods market efficiency Labor market efficiency The Gambia Factor-driven economies The most problematic factors for doing business Access to financing ......0 Inflation ............12.0 12th pillar: Innovation..............4..................5 11th pillar: Business sophistication.................2 10th pillar: Market size...................................87 ..90 ..0 Transition 1–2 1 GCI 2008–2009 (out of 134).....101 ....3..3 4th pillar: Health and primary education .......69 ...............................9 148 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.........................................91 ................................8 GDP (US$ billions)..000 The Gambia Sub-Saharan Africa 1.............................................2 Inadequate supply of infrastructure ..............1: Country/Economy Profiles Gambia.... 2008 ....1............2 Inefficient government bureaucracy........67 .. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............................................9 2nd pillar: Infrastructure...3........................4.........4................................................3..............................8 Crime and theft ............................................0.8..7 Restrictive labor regulations ...........................92 ........................................... 2008..................

......................109 .58 ............................■ Mobile telephone subscriptions*............■ Efficiency of legal framework in challenging regs .■ Financing through local equity market...20 ...03 3...08 11...............■ Rigidity of employment*....................76 ..05 9.■ Burden of customs procedures ..........................02 11.................09 Local supplier quantity ..................■ Quality of the educational system ............■ Business impact of HIV/AIDS ....09 Financial market sophistication.....................................40 ..........■ Burden of government regulation................................................................98 ............01 1...58 ....................■ Availability of scientists and engineers ...............04 5............01 9......................................07 6.... of procedures required to start a business* .................110 .....................■ Soundness of banks .........................■ Efficacy of corporate boards ..........75 ..................■ Business costs of terrorism........■ Company spending on R&D .54 .....03 11...■ Quality of scientific research institutions.......06 8............................37 ....................................46 .........113 .........■ Infant mortality*............02 6...............................................■ Laws relating to ICT...............105 ............63 ..........■ Favoritism in decisions of government officials .......41 ..................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.............................................................................................■ Quality of roads......................1: Country/Economy Profiles Gambia...........................■ Quality of management schools ........■ Diversion of public funds .........................■ Extent and effect of taxation .....................02 7....09 Cooperation in labor-employer relations .....129 ...........................13 6...■ Extent of market dominance ....................■ Utility patents*....................■ Hiring and firing practices .....9 ...13 1....14 1...............124 .....37 ...........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.................■ Judicial independence .41 ...05 4.............22 .........65 ..81 .....................■ Production process sophistication ......................9 ..................01 4..08 6.........................................42 ......130 ...........90 .....................................45 ............02 Foreign market size index*..12 6.........................................02 5.............109 ......■ Quality of electricity supply ...............................07 2...... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....09 1............07 7....10 1..........71 ...........■ Efficiency of legal framework in settling disputes.18 1....77 .........n/a Quality of port infrastructure..................■ Control of international distribution ...........■ Extent of marketing ..................■ Quality of primary education................................................■ Firing costs* ..04 6.........106 ....................■ Nature of competitive advantage ...........■ Willingness to delegate authority ...........16 .....70 ...........................■ Public trust of politicians........01 2................................................15 ................................35 ..02 3.............................................■ Business costs of crime and violence ......06 6.......................■ University-industry collaboration in R&D .......26 ...........■ Regulation of securities exchanges ..........89 ....................................■ Total tax rate* ..................04 2..........■ 2..■ 9..............49 .......05 12..................17 1.....03 8...............36 ...84 ...........29 ......■ Degree of customer orientation ...08 Availability of latest technologies....■ Available seat kilometers* ........04 3............44 ..................19 Property rights ..14 6.....■ Intellectual property protection......■ 7th pillar: Labor market efficiency 7.......■ Transparency of government policymaking .■ Tertiary enrollment* .........■ Interest rate spread* .............................■ Reliability of police services....................................■ 12..04 9.......21 ...............01 11......44 ........■ Organized crime.............................83 ........04 7........■ Time required to start a business* ........31 .....43 .........................................■ Business impact of tuberculosis...■ 4.....................■ 9th pillar: Technological readiness 10th pillar: Market size 10..........■ Effectiveness of anti-monopoly policy .............................■ Protection of minority shareholders’ interests ..11 ...67 .......................06 5....03 4....11 Business impact of malaria......76 ...02 12.45 ......■ Life expectancy*..54 .................01 7.......................■ 12th pillar: Innovation * Hard data Note: For further details and explanation........08 7...........06 12.....................13 ...............01 6......108 ........90 .......■ Prevalence of foreign ownership ................................■ Value chain breadth............■ Strength of investor protection*..................01 12................■ Restriction on capital flows ..36 ..........■ 8........121 ...................11 .11 6...........................75 ..................■ Local availability of research and training services ........■ Buyer sophistication ................121 ......04 12...■ Primary enrollment* .........07 5..........105 ..........07 11..............................132 .............81 . The The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 149 .09 4.............■ 10.........................................................91 ..................03 9...................06 4.01 5....16 1.......10 4..........................03 7......■ Ease of access to loans ..21 .........■ Extent of staff training .................■ Legal rights index*.......■ Firm-level technology absorption.................20 ....................■ National savings rate*................................................................112 .........55 .............04 4................................71 ..............12 1..................40 ..............................71 ..............4 ..........20 .......................■ Internet users* ................................................95 .........................................03 12.......02 2..............................■ Local supplier quality ................02 8....■ Female participation in labor force*........02 1.......■ Agricultural policy costs ....■ Quality of air transport infrastructure...133 .■ State of cluster development .....01 Domestic market size index* ..07 9.60 ....................................................106 ...................53 ............05 8.............06 2..130 ...................01 8...........77 .................................08 1.................................15 Intensity of local competition ......■ HIV prevalence*..........05 Government surplus/deficit* ...........65 ...........48 .................08 Secondary enrollment* .....■ Internet access in schools .....................■ Quality of railroad infrastructure.......................................■ Reliance on professional management ..................120 .............■ Tariff barriers* ...........46 ...■ Pay and productivity.....................................■ Quality of math and science education .........................................41 ...05 7.......................■ Business impact of rules on FDI ..04 8............06 9........................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..............■ 11th pillar: Business sophistication 11.............07 1.................107 .............................60 ....................................35 ......■ Venture capital availability .....■ Government debt*.....................95 ...........117 ......01 3.........................................................................49 .........61 .............60 ..................................................................44 .......02 9........■ Broadband Internet subscribers*.................■ No...................37 .....■ FDI and technology transfer ..........................................03 6.......22 ....................06 7.......121 ..............■ Strength of auditing and reporting standards .............■ Flexibility of wage determination...............................07 Capacity for innovation ...■ Gov’t procurement of advanced tech products ......07 4..........................■ Ethical behavior of firms .....■ Personal computers* ......78 .............06 1........................................■ Education expenditure* .........11 1.......................■ Inflation* .......08 8....................04 11.........05 6...........04 1...................................126 .................................03 1........................................................27 ..................................33 ........08 Quality of overall infrastructure..............■ Prevalence of trade barriers..15 ............................................■ Tuberculosis incidence*..08 4...................111 ............02 4.....76 ...................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3....129 .................06 11..................................03 5.......................................05 5.07 8...........................................09 6...........................................................■ Brain drain ..................05 2.............48 ..................... 2..........................................05 1......................118 ........■ Wastefulness of government spending........................................05 11.........15 1............................03 2.......................................■ Malaria incidence* .....■ Telephone lines* ..................10 6..............

....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010........5..............7 6th pillar: Goods market efficiency.......... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .......................000 6......0.....................117 ................85 .....4.7 4th pillar: Health and primary education ..6 Foreign currency regulations...1 Inflation .......3............3........8 Factor driven Basic requirements..9 8th pillar: Financial market sophistication................6.............................................2............................95 .03 12.........................................17 ....................3......5.4 Tax rates ..9 11th pillar: Business sophistication...........................................................16...6 Financial market sophistication Goods market efficiency Labor market efficiency Georgia Economies in transition from 1 to 2 The most problematic factors for doing business Access to financing ........13......119 ..........12.................................2......................................................................5 Poor public health ..........3......................74 ............... 2008 .............................................1.............78 ...............................4..........................................90 ...........6 3rd pillar: Macroeconomic stability.....2 Poor work ethic in national labor force ............4......9 Crime and theft ....3.............9 GCI 2007–2008 (out of 131)..0....2..............84 ........8 9th pillar: Technological readiness..........1 Policy instability.72 .......................... 2008....8 Government instability/coups ........2........................................................100 ...............13.......................1 1st pillar: Institutions .3... The bars in the figure show the responses weighted according to their rankings..........925..........3...................2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....... 1980–2008 Population (millions)..............................9 Tax regulations ... 2008 ............2..5..............000 3......................... 2008......90 .........4 GDP (US$ billions).4................................................................9 10th pillar: Market size..............9 GDP per capita (US$).........................................1 GDP (PPP) as share (%) of world total...101 ...........................8 2nd pillar: Infrastructure...1 7th pillar: Labor market efficiency .........................................................7.........................90 .................8 Inefficient government bureaucracy.................................................0........4..................1: Country/Economy Profiles Georgia Key indicators GDP (PPP int'l $) per capita.........000 Georgia Europe and Central Asia 9....3..............................2...9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......................................18.............................3.....117 .....................................3 12th pillar: Innovation..7 Inadequately educated workforce......89 ....3 150 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...........................113 .......................................................................72 ............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5....................8 Transition 1–2 1 GCI 2008–2009 (out of 134)......................3......4 Restrictive labor regulations ..........7 5th pillar: Higher education and training ............................................2........3.......................0............0 Inadequate supply of infrastructure .................5 Corruption.......................

...................■ Prevalence of foreign ownership ................■ Financing through local equity market........3 ........................01 5...................1: Country/Economy Profiles Georgia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 151 ..............01 11..............03 4...15 1....88 ...........08 6......................05 9...........■ 9th pillar: Technological readiness 10th pillar: Market size 10.........130 .................■ Value chain breadth..........106 .................4 ..............16 ....13 1.........■ 12.................■ Primary enrollment* ......05 5..............................29 ...■ Flexibility of wage determination..........70 ..........09 4.................................................■ 9............122 .........05 6.............04 9...........87 .....61 ..05 11..........................08 Availability of latest technologies.....................126 .................115 ..........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.............■ Soundness of banks ....................................................■ Total tax rate* ...........■ University-industry collaboration in R&D ........................................16 ...........85 .....................17 1......................■ Business impact of tuberculosis................10 6.....................................■ Wastefulness of government spending...97 ..01 6......................60 ...............................82 .............■ Laws relating to ICT...........................119 ......■ 7th pillar: Labor market efficiency 7....................01 12.........02 11...■ State of cluster development ...■ Government debt*..■ Quality of port infrastructure.05 12...........................■ Infant mortality*.........................................................06 6...■ Business impact of HIV/AIDS .....■ Pay and productivity.66 .........................12 6....125 .....■ Efficiency of legal framework in settling disputes..............................90 .......■ Personal computers* .....52 .........■ Tuberculosis incidence*..................................07 7.■ FDI and technology transfer .............01 9...07 9....■ Quality of math and science education ............................41 .........■ Nature of competitive advantage ............08 4.......41 ...........■ Available seat kilometers* ......................■ Regulation of securities exchanges ....79 .............................02 1.........................................■ Venture capital availability .................................■ Control of international distribution .............07 11......■ Quality of primary education................06 5...08 Quality of overall infrastructure....19 Property rights ........7 ...............07 2...........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..■ National savings rate*..........................................................................................122 ...................................03 9........117 ......................................117 ........................................■ 8......08 Secondary enrollment* .......■ Inflation* ...............04 6.........■ Female participation in labor force*........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.............02 2......■ Judicial independence .............02 4.............................■ Education expenditure* ......■ Firm-level technology absorption....39 .............05 Government surplus/deficit* .............■ Life expectancy*.....■ Extent of staff training .........................................................93 ..01 Domestic market size index* ......■ Production process sophistication ..............■ Transparency of government policymaking ..............58 ..97 .................■ Reliability of police services......................09 Cooperation in labor-employer relations ......97 .....96 .......■ Efficacy of corporate boards .01 3.......125 .......01 2........................................102 ...99 .................■ Business costs of terrorism.............................95 .■ Business impact of rules on FDI ..82 .......04 2.....04 11.....02 7......................06 1.....12 1......■ 11th pillar: Business sophistication 11.107 ......■ Burden of customs procedures .............................31 ............■ Prevalence of trade barriers..................................64 .................................................97 ........06 11......101 ......■ Quality of electricity supply .............................03 8......04 12...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....09 Financial market sophistication..66 ..............70 .117 ...........129 .................■ Tertiary enrollment* .■ Rigidity of employment*........■ Telephone lines* ..............10 4...............18 1..........11 Business impact of malaria.................................................................54 .....................................................■ Legal rights index*.......................01 4..06 2........■ Efficiency of legal framework in challenging regs .................■ Time required to start a business* .........14 6...............■ Ethical behavior of firms .............................................................65 .............■ Favoritism in decisions of government officials ..................104 ......................81 ..........................................98 ......11 1......■ Brain drain .........................................................124 ..................67 ......■ Buyer sophistication ...43 .....08 11.............................................03 11.........■ Burden of government regulation.....■ Utility patents*...............100 .....................05 4.................................06 4..........■ Interest rate spread* ...................02 8................................■ Business costs of crime and violence .....01 1.........65 ........78 ...............■ Degree of customer orientation .02 9......................................01 8.....■ Protection of minority shareholders’ interests ..58 ......■ Availability of scientists and engineers .......................................3 .............. 2.........04 7..............122 ...■ Gov’t procurement of advanced tech products ..........84 .............................................■ No........■ Diversion of public funds ............03 3................109 ...55 ..............02 Foreign market size index*.......................09 6.....04 5...............04 8..........■ 10...............................■ Public trust of politicians......■ Quality of railroad infrastructure .112 ............■ Local supplier quality ............■ Company spending on R&D .............03 1...........82 ....■ Quality of scientific research institutions.....06 7...57 ..........69 .......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...............96 ....07 8...88 ........■ Extent of market dominance ...■ Reliance on professional management .............. of procedures required to start a business* ...................119 ........................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.80 .................................................08 1.......70 .....................09 Local supplier quantity ..72 ......92 .............02 12.45 ..............14 1..................................103 .....07 1...........................................02 3...■ Effectiveness of anti-monopoly policy .....55 ............■ Extent and effect of taxation .................................................07 5.....................................................■ Restriction on capital flows .....................76 ..................04 1...40 ...................15 ....10 1...................................................34 .......96 ........................03 5.93 ......................................07 Capacity for innovation .....13 6....................................03 6....06 9.......................................................■ Quality of the educational system ......■ Broadband Internet subscribers*...06 8..........■ Organized crime....................................................................07 4.■ Extent of marketing .....88 .81 .......................■ Malaria incidence* ...................................95 ..09 1...115 ..............................................................■ Local availability of research and training services ...........04 4.08 7........■ 4.■ Internet users* ...............................................■ Tariff barriers* .........■ Quality of air transport infrastructure.05 7..................................03 2.................■ Mobile telephone subscriptions*.......................9 .....................................01 7.........................................60 .........■ HIV prevalence*........6 .................04 3........03 12.....77 ...........108 ............■ Agricultural policy costs ..........15 Intensity of local competition ......02 6................■ Intellectual property protection....109 ...............06 12.............................4 .........16 1..........................19 ....91 ..................75 .........................03 7............................19 ..........................■ Strength of investor protection*.........................................................................................05 8..............05 1.02 5....................................■ Willingness to delegate authority .....................................................■ Ease of access to loans ...................■ Quality of management schools ......................■ 2..11 6.....123 ....■ Strength of auditing and reporting standards ..................81 ............■ Quality of roads..........................38 ...............■ Hiring and firing practices .......73 ..■ Firing costs* ........05 2......................08 8.....50 .......................91 .....................108 .......89 .............................■ Internet access in schools .........................................07 6...

.......9 Tax rates ..............4 GDP (PPP) as share (%) of world total...0...............................2.....................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..44..82......14...............8 12th pillar: Innovation..........2.......6..........................................................8 . 2008..........19...3 Corruption...........1 6th pillar: Goods market efficiency..5...................................................................................1 ..5 ...........................5........9 Restrictive labor regulations .............................6 Access to financing ..........667..................................5...................................................0 152 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..0......9 Crime and theft ...1 Financial market sophistication Goods market efficiency Labor market efficiency Germany Innovation-driven economies The most problematic factors for doing business Tax regulations ...........................3 4th pillar: Health and primary education ...5......................................................................000 Germany OECD 30................6.0 Inadequate supply of infrastructure ......4...0.....................7 9th pillar: Technological readiness.....5 11th pillar: Business sophistication.2 .......6...................9 Policy instability....................................7 .........................20...23 40.......................14 .5 .5 .. 1980–2008 Population (millions)..1: Country/Economy Profiles Germany Key indicators GDP (PPP int'l $) per capita...............................5.....................7 ......5 Inadequately educated workforce.36 ..6 10th pillar: Market size.........5...............................3 8th pillar: Financial market sophistication......0 7th pillar: Labor market efficiency ...........5 GDP (US$ billions).......................................6..............3..........6...................18 .... The bars in the figure show the responses weighted according to their rankings....22 ... 2008 .........6 Foreign currency regulations...7 .........................1 5th pillar: Higher education and training ...........5 GCI 2007–2008 (out of 131)..............5...................4 Inefficient government bureaucracy................................5..6 3rd pillar: Macroeconomic stability..................................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.............................5.0............................6 Poor work ethic in national labor force ..... 2008 ..6 Inflation ...0 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...................30 ...... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.........7 Government instability/coups .....................1 Poor public health ...............0.......5 Factor driven Basic requirements..............................................................4 Transition 1–2 1 GCI 2008–2009 (out of 134)...................................................16 ..................................5 2nd pillar: Infrastructure.......24 ........................12 .....660..................4....14.............5 GDP per capita (US$)......................................................................................10...4.................................................................8 1st pillar: Institutions ...5...5........5...70 ............................................5......................000 20..................................0......................1............................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............................... 2008..000 10..............

...........■ Life expectancy*..........05 2...10 1.......02 6......................5 ..........................04 3.■ Favoritism in decisions of government officials ..................103 .....■ Value chain breadth...03 11.........06 2.....■ Legal rights index*....5 ....1 ..............■ Hiring and firing practices ......11 .9 ............................09 Local supplier quantity ............................................26 ..■ 9.65 ............33 ..126 .....................39 .................58 ....06 8....15 1..06 6.........■ Quality of roads........90 .........01 3...04 8.....■ Quality of management schools ..........................................2 .....03 2......03 4........................................1 .08 Availability of latest technologies...................................75 .......................14 1........06